...ARAVIND EYE HOSPITAL EXECUTIVE SUMMARY Aravind Eye Hospital was set up in 1976 by Dr. Govindappa Venkataswamy (or Dr. V) with the noble intention of being a private, non-profit hospital that provided quality eye care. The case is set against the backdrop of the social problem of blindness in India. With over 12 million blind people, 70 – 80% of the cases are primarily due to cataract that can be treated through surgery. However, the low per-capita income as well as the prevalence of cataract cases among the poorer sections of the society made the surgeries entirely unaffordable. Aravind Eye Hospital started off as a 20-bed facility in 1976 in Madurai, soon started a 250-bed main hospital and over time, expanded to Theni, Thirunelveli and Coimbatore. The central feature of the service provided is the clear delineation of services in the form of paid service in the Main hospital and non-paid service in the Free hospital. They also held several Eye camps to mobilize the poor in villages and spread awareness of the dangers of their ailments. The vision that motivates Dr. V is to market cataract surgery such that it reaches every nook and corner of the developing countries facing this problem. Clearly, profit or a healthy bottomline is not the motivator in this case. However, Aravind faces some real issues at the field level that need urgent resolution to help it achieve its mission of bringing eyesight to the masses of poor people in India. SITUATIONAL ANALYSIS The case of...
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...ANALYSIS OF ORGANIZATION Aravind Eye Care System GROUP A2 AACHAL GARG 14F101 AMEENO PRADEEP PAUL 14F108 CHAITANYA JITENDRA GANDHI 14F118 JOE J KYNADI 14F125 KANIKA BANDOONI 14F126 SUDIPTA MONDAL 14F156 Contents Objectives 3 Organization Ecosystem 3 Organizational Context and structure 3 Structural Dimension 4 Formalization 4 Specialization 5 Hierarchy 5 Centralization 5 Professionalism 5 Organization’s Mission and Vision 5 Structural Context of Mission 6 Organizational Goals and Strategy 7 Porter’s Competitive Strategy 7 Miles and Snow’s Strategy Typology 8 Organisation environment and structure compatibility 9 Workplace Technology 11 Core and Non Core Technology 11 Technical Complexity 11 Relationship of Dept Technology to structural & management characteristics 12 Culture 12 Mission Oriented Culture 12 Cultural Strength and Internal Integration 12 Rites and Ceremonies 13 Control System 13 Value based leadership 14 Organizational Change (expansion) & Its Implications on Organizational Structure 14 A New Business Model 14 Aravind Today 15 References 17 Exhibits 18 Exhibit 1 18 Exhibit 2 19 Exhibit 3 19 Objectives The objective of this study is to analyze an organization by applying our theoretical knowledge of organization theory, learnt in classrooms. The organization we have chosen to analyze is Aravind Eye Care. The analysis is based on the following aspects: * Current organizational...
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...1. Executive Summary The present case concerns Aravind Eye hospital which is a privately owned hospital and provides free services to the poor and needy people. Dr.Venkataswamy who is the founder of the hospital wants to expand Aravind Eye hospital to all parts of India, Asia, Africa and rest of the world so that quality and free eye services can be provided to the poor and needy people who have curable blindness but can’t afford to pay for their treatment. Dr. V is interested in knowing how this expansion can be achieved through the franchisee model.The case writer has been hired as a consultant to advice Dr. V as to how to realize his dream. The statement ‘Once Aravind, always Aravind’, supported by the whole staff of AEH, reflects this mission and partly validates the business model of Aravind Eye Care System. This model aims to make eye care available to all, regardless of income. A sense of compassion and commitment, dedication to quality and cost control and strong leadership are key elements in the success of this innovative health care model. After examining the case we can observes that there are various problems which need to be looked at. These include ensuring that the model is self-sustainable and the franchisee is able to recover his cost of capital, to ensure that the main purpose of the hospital of providing free services to the poor and needy is not compromised, quality man power is available to ensure smooth functioning of the franchises and to address the...
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...Democratizing Commerce: The Challenge for the 21st Century C.K. Prahalad Paul and Ruth McCracken Distinguished University Professor The Ross School of Business at the University of Michigan © C.K. Prahalad 1 The Critical Question: Is Globalization “Good” or “Bad” for the Poor? vs. How to Make Globalization Work for the Benefit of All? © C.K. Prahalad 2 Democratizing Commerce: Every Person to have Access to the Benefits of the Global Economy. © C.K. Prahalad 3 Democratizing Commerce: Every Person to have Access to the Benefits of the Global Economy. Every Person as a Consumer: Afford world class products and services, Shape their own experiences. + Every Person as a Producer: Have Access to Global Markets © C.K. Prahalad 4 Democratizing Commerce: Inclusion of 4 billion underserved in the Market Economy Micro Consumers & Micro Producers BOP as a Market The Fortune at the Bottom of the Pyramid Consumers Shape their own Experiences Consumers ~ Firm Co Creation of Value The Future of Competition 5 © C.K. Prahalad BOP: A Contested Ideological Market? Public Sector, AID, Multilaterals Universal Solutions CSOs Social Justice Personal Philanthropy Agendas New Business Opportunities Private Sector: Large Firms, including MNCs ? © C.K. Prahalad 6 What You See is not What it is……….. Source: FT, April 20, 2004 © C.K. Prahalad 7 Source: Mr. Subrato Bhowmik © C.K. Prahalad 8 The Cell Phone Industry: ...
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...Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780 RIGHT TO SIGHT: A MANAGEMENT CASE STUDY ON ARAVIND EYE HOSPITALS DR. BHUPINDER CHAUDHARY*; DR. ASHWIN G. MODI**; DR. KALYAN REDDY*** *Assistant Professor, Department of Hospital Management, H.N.G. University, Patan (Gujarat)-384265. **Co-ordinator, Department of Hospital Management, H.N.G. University, Patan (Gujarat)-384265. ***Assistant Professor, Department of Hospital Management, H.N.G. University, Patan (Gujarat)-384265. ABSTRACT With the aim of providing affordable eye care services to a country which has about 20 million blind citizens and 80% of it due to curable cataracts, at the age of 58, Dr. V. Started, the Aravind Eye Hospital. Popularly known as the McDonald‘s of cataract surgery, with a bed strength of more than 4000 beds and serving 0.25 million patients every year, this is one of the world‘s largest eye care systems catering largely to the poor population. Poor people with cataract can regain their eye-sight at a price as low as $40 or even free, if they can‘t afford. It was demonstrated by this non-profit system that it is practically possible to combine high quality, low cost, world scale and sustainability. It has been seen as a unique business model by many Organizations and has proven that care provided at low cost can also yield sustainability and even profitability. Aravind system's successful manufacturing unit, Aurolab, has produced 6%-7% of the low-cost lenses world-wide in 2002,...
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...Topic: Designing and managing services Case: Aravind Eye hospital CASE UNDERSTANDING AND ANALYSIS Aim of Aravind Hospitals: To treat the eyesight of the poor people in each and every part of India and in other asian, africa countries and in countries across the globe. Founder of Aravind Hospitals: Initially it had three surgeons :Dr. Venkataswamy, his sister, Dr. G.Natchiar; and her husband, Dr. P. Namperumalswamy .Dr. Venkataswamy is the founder of Aravind Hospitals. Personal tragedies at a very age (like the demise of his father) made him strong and accept the responsibilities of his family. * Strong technical expertise. * A strong sense of passionate service towards mankind included with spirituality and idealism. * Emotional connect with differently abled people as he himself has suffered from arthritis. Added with all personal experiences, a strong technical expertise helped him to build Aravind Hospitals Timeline of Aravind Hospitals: Year | Event | 1976 | Established main hospital with 20 beds | 1977 | 30 beds annex | 1978 | Free hospital with 70 beds started | 1981 | 250 beds with 80,000 sq feet of space in five floors | 1984 | 350-bed free hospital was opened | 1988 | New hospitals at Tirunelvelli and Thani started | 1990 | Free hospital opens to walk in patients | 1991 | Intraocular factory setup | 1992 | 240 staff including 30 Doctors,120 nurses | Operations in Aravind Hospitals: The hospital provides two principal...
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...DO1-136-I ARAVIND EYE HEALTH CARE OPERATIONS Original written by professor Ángel Díaz Matalobos at IE Business School, Juan Pons, Motorola Spain. and Stephan Pahls, University Hospital, Basel. Original version, 15 June 2010. (R.L. 19 January 2012). The authors acknowledge the generous support of Aravind while conducting the field research. Published by IE Publishing Department. María de Molina 13, 28006 – Madrid, Spain. ©2010 IE. Total or partial publication of this document without the express, written consent IE is prohibited. INTRODUCTION Improving efficiency in health care is an acute issue. In the developed world this is due to increases in costs and quality issues (Aptel and Pourjalali, 2001; Spear, 2005); Western Europe currently spends 9% of its GDP on health care, and, if the trend continues, will spend over 20% by the year 2050 (Drouin et al., 2008.) In the developing world on the other hand demand exceed capacity; it was estimated that in 1997 over 12 million people were blind in India from cataracts, while a further 3.8 million new cases are developed each year, and current capacity for surgery is far below this level (Thulasiraj et al., 1997.) Better health care operations are clearly required to deal with issues of ageing population, increased costs and unmet demand. One case that provides clues to such means is Aravind, the largest eye care provider in the world, with over 2.5 million operations performed and 20 million patients treated in...
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...Singapore Management University Maters of Science Innovation | Core Module MGMT 661 By Associate Prof. Adel F. Dimian My Definition, Understanding and Response of the Lecture Topic & Discussions. Innovation Strategy Development Part 1&2 When the need of wanting to be different arises, the need to innovate takes a strong hold in one’s mind to bring about new changes that are often challenged in many different styles, manner, methods and modes. To my understanding different types of innovations requires and employs different innovative strategy or strategies. Which in turn determines the growth phase of the organization and its strategic approach and desired outcome of the innovation. Developing an Innovation Strategy Frame Work The Innovative ideas and strategy plans and developments can only take valuable shape and growth with the right leadership and driving force. Therefore with the discussions developed and generated, I have come to an understanding that successful innovation strategy is determined by the true leadership of an innovative leader with an innovative mindset who wants to achieve success for his organization, employees and himself. Instead of being comfortable and clustering around a few achieved strategies, a successful innovative leader begins by setting high targets and aspirations for the organization. Followed by recruiting qualified candidates and instilling tremendous positive energy, spirit and enthusiasm in the work environment. Although...
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...DESIGN THINKING Summative Assignment DSM5A1 – Graeme Campbell Lorenzo Robuschi S00607430 05/12/2014 Define the Concept of Design Thinking Design Thinking The global corporate world is engaged in the continuous process of searching for ways in which it can improve its performance. As businesses become more and more competitive with each other, employers and business managers have to continually seek ways by means of which they can improve their performance and develop competitive strategies and edges in order to clinch leading positions. Among the myriad of strategies sought for this purpose is that of design thinking. Design thinking can be defined as a process by which businesses empathize with the situation and needs of the consumers so that they are able to produce goods and offer services that meet these needs. Therefore, design thinking is a protocol for solving emergent problems and discovering new ways and opportunities through which a business can improve and better its performance (Martin, 2007 P. 198). My Own Definition of Design Thinking Design thinking is the process of contextualizing business problems within the design framework. In this framework, the business leader envisions the problem at hand in a pictorial form and places all elements of the problem in its place. They then explore means to be used to link the problem with an amicable solution that will favor the needs of the consumers, who are the stakeholders that benefit...
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...EMERGING BUSINESS MODELS FROM EMERGING ECONOMIES 8/11/2013 Dr. S.Balasubrahmanyam, IIM Kozhikode 1 Dr. S.Balasubrahmanyam Indian Institute of Management Kozhikode Strategic Management of Innovation (27th July, 2013) PROMISING BUSINESS MODELS AT BOP 8/11/2013 Profitable or at least self-sustaining without requiring continuous subsidy Scalable and thus able to reach and improve the lives of significant numbers of poor people Dr. S.Balasubrahmanyam, IIM Kozhikode 2 BUSINESS MODELS IN LOW-END MARKETS 8/11/2013 No-frills products Small-size products (e.g., micro-loans) Group products (joint liability group-JLG) Pre-assured demand (JLGs guarantee demand) Dr. S.Balasubrahmanyam, IIM Kozhikode Paraskilling 3 8/11/2013 Dr. S.Balasubrahmanyam, IIM Kozhikode CORE MODEL ELEMENTS PAY-PER-USE MODEL-1: 4 COMMUNITY WATER FILTRATION MODEL: PERCEPTIONS OF USERS & NON-USERS 8/11/2013 Dr. S.Balasubrahmanyam, IIM Kozhikode 5 TWO-THIRDS OF BYRRAJU PLANTS ARE PROFITABLE WITHOUT SIGNIFICANT MARKETING EFFORT 8/11/2013 Dr. S.Balasubrahmanyam, IIM Kozhikode 6 OTHER INDIAN EXAMPLES OF MODEL-1 8/11/2013 Water: Naandi Foundation Water Health International Poorvi Enterprises Piramal Foundation Dr. S.Balasubrahmanyam, IIM Kozhikode Energy: Biogas Bank S3IDF Lighting: ICT: Drishtee N-Logue Comat 7 NO FRILLS SERVICE MODEL-2: CORE MODEL ELEMENTS ...
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...Americans Jun 23rd 2011 | from the print edition MANAGEMENT gurus have rhapsodised about “the fortune at the bottom of the pyramid” in emerging markets ever since C.K. Prahalad popularised the idea in 2006. They have filled books with stories of cut-price Indian hospitals and Chinese firms that make $100 computers. But when it comes to the bottom of the pyramid in the rich world, the gurus lose interest. This is understandable. McDonald's and Walmart do not have the same exotic ring as Aravind Eye Care and Tata Motors. The West's bottom-of-the-pyramid companies are an unglamorous bunch. Many rely on poorly educated shift workers. Some inhabit the nether world of loan sharks and bail bondsmen. But even in one of the world's richest countries the hard-up represent a huge and growing market. The average American household saw its real income decline between 2005 and 2009. Millions of middle-class Americans have been forced to “downshift”, as credit dries up and the costs of college and health care soar. Some 44m Americans live below the official poverty line ($21,954 a year for a family of four). Consumer spending per household fell by 2.8% in 2009, the first time it had fallen since the Bureau of Labour Statistics started gathering data in 1984. This is a challenge to the American dream. But it is also an opportunity for clever companies. Even the poorest Americans are rich by the standards of many other countries, so there is money to be made by serving them. McDonald's, for example...
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...Innovating with Ingenuity Chapter 8, Innovating with Ingenuity, shows us how companies around the world have been innovating. It is important to understand what ingenuity really means. It is defined as the quality of being ingeniously inventive, creative, and practical; inventiveness. The chapter starts out with the quote, “When people ask me ‘What is your competitive advantage?’ I say, ‘The quality of our engineers.’” This was stated by Mauricio Botelho, President and CEO of Embraer (A successful Brazilian aircraft manufacturer) from 1995 to 2007. John Engler, president of the National Association of Manufacturers, in 2005 said that the United States is and remains on being the world’s frontrunner in innovation. He emphasizes that other countries are advancing in technology as enthusiastically as we are and that therefore we cannot assume we are safely ahead of the world. Throughout the chapter we are shown how challengers have been investing in innovation by capitalizing in research and development. Some examples included are companies like ZTE, a Chinese telecom equipment maker that spent 12% of its $3 billion 2006 revenue on research and development. In accordance to VentureOne, Venture capitalists invested $1.89 billion in Chinese companies in 2006. In total, from 2005 to 2006 there was a 34% increase in investments in Chinese information technology firms. Governments are also becoming aware of how important innovation is when it comes to modernization. For example...
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...Managerial Studies, 601 S. Morgan Street (MC 243), Chicago, IL 60607, United States University of Wyoming, Department of Management and Marketing, Dept. 3275, 1000 E. University Ave., Laramie, WY 82071, United States University of Illinois at Urbana-Champaign, 61 Wohlers Hall, 1206 South Sixth Street, Champaign, IL 61820, United States article info Article history: Accepted 1 February 2009 Keywords: Subsistence marketplaces Subsistence consumers Bottom of the pyramid abstract Over 4 billion people live in what is commonly referred to as the “bottom of the pyramid” or as subsistence marketplaces. These individuals and families live in substandard housing, with limited or no access to sanitation, potable water, and health care, have low levels of literacy, and earn very low incomes. Scholars and practitioners alike suggest that the problems existing in subsistence marketplaces demand the attention and involvement of responsible businesses and that doing business with consumers in such marketplaces can be both socially responsible and profitable. This research explores the strategies and tactics currently being used across commercial and social enterprises engaged in subsistence marketplaces. The analysis leads to recommendations about marketing practices currently used by companies and organizations that are successfully operating in subsistence marketplaces. © 2009 Elsevier Inc. All rights reserved. 1. Introduction Of the 6.5 billion members of the human...
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...Hunger for success, inspiration, diligence and persistence are also the hallmarks of success of entrepreneurs in smaller towns, where glamour may be lacking but the quieter and gentler way of life as well as the desire to hang on to local roots are assets in their own right. Rashmi Bansal is the author of a number of books on startups and social entrepreneurship, such as Poor Little Rich Slum (see my review). She graduated from Sophia College in Mumbai and IIM Ahmedabad. The book (357 pages, published by Westland India) covers three kinds of entrepreneurs: those who left India and then returned to launch their ventures, those who never left India, and those who have a broader social vision. Each entrepreneur profile in the book is about 15-20 pages in length, and includes key takeaways along with the ups and downs of each journey. Vinod Khutal grew up near Indore and studied architecture, before studying computer science. An ad by game developer Gameloft on Naukri.com led him to a job in their Hyderabad office, where he eventually became a game designer. In 2009, he founded Twist Mobile, with apps such as Age Effect. He tied up with VServ to use their app-wrapper technology for ads embedded in apps. Success stories included becoming the first Asian company with 10 million downloads on Noki’s Ovi store. “Today’s killer app is tomorrow’s delete,” says Khutal, who has now branched out into Android and iPhone apps. Sriram Subramanya grew up in Pondicherry and started work in the auto...
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...Copyright Copyright © 2012 Joan Magretta All rights reserved No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. ISBN: 978-1-4221-6059-6 By his example, Arthur Rosin, my uncle, taught me the pleasures of understanding and explaining. This book is dedicated to him, to Betty Rosin, and to my parents, Cyrille and Eugene Gorin. Contents Copyright Acknowledgments Introduction Part One: What Is Competition? 1. Competition: The Right Mind-Set 2. The Five Forces: Competing for Profits 3. Competitive Advantage: The Value Chain and Your P&L Part Two: What Is Strategy? 4. Creating Value: The Core 5. Trade-offs: The Linchpin 6. Fit: The Amplifier 7. Continuity: The Enabler Epilogue: A Short List of Implications FAQs: An Interview with Michael Porter A Porter Glossary: Key Concepts Chapter Notes and Sources About the Author Acknowledgments The Michael Porter I know is first and foremost a gifted teacher. If this book succeeds in helping readers understand Porter’s ideas in their full richness, it is thanks in large measure to his encouragement, his guidance, and his patience in explaining...
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