Kuldeep
Pardeep
PGDM 2nd (Satyug
Darshan Tech.
Campus)
Contents
Shouldice insight
Introduction
Administrative Information
Corporate Name: Shouldice Hospital Limited
Established: 1945
Location: 7750 Bayview Avenue, Thornhill Ontario,
Canada, L3T 4A3
Telephone: (905)889-1125
Fax: (905)889-4216
Toll Free: 1-800-291-7750
Specialty: Abdominal Wall Hernia Repairs
Insight Shouldice
History
Dr. Edward Earle Shouldice graduated from the
University of Toronto in 1916.
During World War II, he was called to serve on the
Medical Examining Board.
Dr. Shouldice, a major in the army, found that
many young men willing to serve their country had
to be denied enlistment. These men needed surgical
treatment to repair their hernias before they could
be pronounced physically fit for military training.
Step 2.
Return to the Booking for Surgery page, click on Insurance
Information, and print it on your printer.
Step 3.
Complete all documents as required and forward by fax (905-8894216) or regular mail to our office
Day 1
30/36
Arrivals
13 pm
Check by
MD
(15 mins)
If OK:
Check-in &
admin
Blood
test
Explain
process
steps
Dinner
at 6 pm
Tea &
cookies
at 9 pm
Day 2
Local
anaesthesia
(-20mins)
Surgery
(40 mins)
Rest in room
(2-3hrs)
Start
eating &
moving
Dinner
at 6 pm
Tea &
cookies
at 9 pm
Dinner
at 6 pm
Tea &
cookies
at 9 pm
Day 3
Loosen
stitches
Service Concept
What does Shouldice hospital offer to its customers?
Independence/Dignity/Control
Social experience, fraternity
Facility at Hospital
Two facilities at one building
oHospital
oClinic
Facility divided
Level-1
Kitchen and
Dining room
Level-2
Lounge
area,Addmission
office, Patient room
Level-3
Additional patient
room and
Recreational room
PLACE
PROMOTION
PHYSICAL EVIDENCE
PEOPLE
PROCESS
Continued..
Physical evidence -A relaxing, resort-like setting
Promotion
Continued.
People Very satisfied employees long waiting lines for joining hospital as
well as satisfied employees by giving bonus other than their fixed salaries
Price Less price than their competitor with best service support which offering
same at high cost (954$ vs. 2000-4000$)
Product Providing service related to Hernia
Place Green and calm place outside from main city
Price Comparison
Costs of typical operations
Transportation
$954
$200-600
$2000-4000
$0
days
days
days
10
days
$450-4500
$750-7500
$1604-6054
0.80%
$13-48
$2750-11500
10.00%
$275-1150
$1,617-6,102
$3,025-12,650
Profit
Hospital:
Revenues
(4 days X $111/day x 6,850 patients/year)
( in $ )
3,041,400
Cost
2,800,000
Profit:
Clinic:
Revenues (($450+ 60 + 75 X 0.20) X6,850) 3,596,250
Cost
241,400
2,000,000
Profit
1,596,250
Total Profit
1,837,650
USP of Shouldice
There is No Substitute for Experience
Company
External
marketing
This enables people to spend time with their family and this in
term keeps them contented and in the long run reduces the
attrition rate
Internal
This is internal marketing for the company.
marketing
Employee
Interactive
marketing
Customer
Problem
Increase Capacity
Shouldice is operating at its best operating level for a service company
with limited flexibility in its plant, a specialized work force but are failing to
meet all the demand for its chosen market niche. Adding additional
capacity to meet the unmet market need may upset the existing work
force and lower service quality. Failing to meet the market demand may
invite competition that could eventually cause Shouldice to loss market
share and end up with excess capacity.
Problem Justification
There is limited operating facts presented in the case so assumptions
have made based on the information that was presented.
It is assumed that they are operating at the best operating level
because the way the case describes how efficiently the hospital is ran and
how the patients appear to be pleased with there treatment
There is limited operating facts presented in the case so assumptions
have made based on the information that was presented.
It is assumed that they are operating at the best operating level
because the way the case describes how efficiently the hospital is ran
and how the patients appear to be pleased with there treatment
Alternatives
Add Saturday operations
Alternatives Evaluation
Schedule Saturday as an Operating Day
Advantages
No investment is needed
Can still maintain quality
Disadvantages
Require to schedule 23-25 operations on Saturday
Six surgeons and a supervising surgeon have to work on
Saturdays
Additional other personnel
Violates the implied contract that Shouldice has with its
surgeons, strong opposition by the senior doctors
Alternatives Evaluation
Add a new floor
Total Number of Rooms: 89 +45= 134
Advantages
Easy to control and maintain quality
Retain the culture and environment
Disadvantages
Require to schedule doctors to the full capacity of five days per
week
Increase work load on admissions, kitchen, laundry,
housekeeping and accounting
Further staggering of meal hours for patients (100 seat dinning
room)
Disruption during construction
Alternatives Evaluation
Establish a new facility for hernia
Advantages
New location close to the customers, say USA
Improve its competitive position and increase its profits
Operate in a less restrictive environment
New Opportunities for existing personnel
Transfer of knowledge and expertise to the new facilities
Disadvantages
Requires a significant investment.
Control of quality
It is difficult to create the same culture and atmosphere
Potential competition with the existing facility
Alternatives Suggested
Add Saturday operations
No fresh investment required.