...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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...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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...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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...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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...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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...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 8/11/2013 Dr. S.Balasubrahmanyam, IIM Kozhikode 8 LIFESPRING HOSPITAL’S ASSET UTILIZATION = 5 TIMES THAT OF COMPARABLE PRIVATE CLINICS 8/11/2013 Dr. S.Balasubrahmanyam, IIM Kozhikode 9 OTHER INDIAN EXAMPLES OF MODEL-2 8/11/2013 Health: Vaatsalya Hospitals Dial 1298 Narayana Hrudayalaya Hospitals SKS Microfinance Rural Mobile Telecommunications Dr....
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...A Low-Cost Efficient Wireless Architecture for Rural Network Connectivity 1 Introduction Many rural regions around the world, especially in developing regions, do not have good connectivity solutions which are economically viable. As a result, many of these regions remain disconnected from both the rest of the world and from progress in general. In this proposal, I will describe the design of WiFi-based Rural Extensions (WiRE), a new wireless network architecture that can provide connectivity to rural regions at extremely low costs. The WiRE architecture is tailored for the typical rural landscape in several developing regions, in which the population is spread across small but scattered rural regions (less than 1-2 sq kms) within 100-200 kms of the city. WiRE is designed to be a wireless distribution network that extends connectivity from the city to each village. The WiRE architecture has largely been inspired by my prior work on WiFi-based Long Distance (WiLD) Networks [42, 62, 35, 54, 64, 34], a low cost point-to-point network connectivity solution that provides very high bandwidth (typically 6− 10 Mbps) over very long-distances. While prior work on WiLD networks [48, 5, 42, 62, 35] has made significant progress in the design of highperformance MAC layer solutions, we still lack a vision of how to design a comprehensive, low-cost, rural connectivity architecture that can efficiently support a wide-range of applications. It is this goal that I wish to achieve...
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...Schumpeter The bottom of the pyramid Businesses are learning to serve the growing number of hard-up 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...
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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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...Journal of Business Research 63 (2010) 559–569 Contents lists available at ScienceDirect Journal of Business Research Marketing to subsistence consumers: Lessons from practice Kelly L. Weidner a,⁎, José Antonio Rosa b, Madhu Viswanathan c a b c University of Illinois at Chicago, Department of 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...
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...TALENT ACQUISITION AND RETENTION CHALLENGES FOR RURAL MARKETING Submitted to Submitted by Proff Vijaya Lakshmi R Mohan Shantha Kumar Abstract Over the years there has been a phenomenal growth in the number of social enterprises in India. This is partly a consequence of a new policy of the government to gradually withdraw from social development activities. The gap thus created is being filled by social enterprises. A social enterprise can be a ‘for-profit’ or ‘not- for-profit’ venture engaged in income-generating activities with an agenda of bringing about a positive change in the society. While social enterprises are engaged in the development of people, it is rather paradoxical that they experience a variety of problems with respect to the management of human resources within their enterprises. It is common knowledge that social enterprises perennially struggle with various critical human resource issues such as getting employees at low rates of compensation, providing growth opportunities for employees within the organization, retaining talent especially in the middle management, providing clearly defined roles and tasks to employees, etc, leading to high attrition and increasing the cost of acquiring and training new employees. It becomes critical for social enterprises to think out-of-the-box and try a variety of innovative strategies to overcome these problems. This paper discusses a few such innovative HR strategies adopted by social enterprises...
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...Abstract Theory of constraints (TOC) is about thinking in logical, systematic, or structured processes similar to the PDCA learning loop and also about analyzing cause and effect, verifying basic assumptions, exploring alternatives and process improvement. The goal of TOC is to maximize the efficiency of a process selectively at the most critical points (constraints) and thereby maximize profitability. The purpose of this paper is to provide a comprehensive descriptive study on applying “Theory of Constraint” principles in improving the effectiveness of the service process that was limiting the entire service system. We have studied based on Schmenner’s classification of service organizations into four quadrants of service process matrix. Clear explanations supplemented by examples for each quadrant define how the theory works, why it works and what issues are resolved and what benefits are accrued. Introduction Operations management of services talks about how to plan, execute and improve service delivery so that more services are delivered faster and reliably with same/similar resources without compromising on quality. Services, in general, can be any of – Public Services, Professional Services, IT Services, Healthcare services, Banking/Insurance etc. Theory of Constraints, as proposed by Eli Goldratt, works well in a Manufacturing setup, but to replicate in a Service model requires adaption more than adoption. It should be accepted that trying to force a service organization...
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