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Presented By:Sonia

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.

Unique Appointment Procedure


Patients living within 100 km (60 miles) from the hospital
should come to the office for a personal examination.
Examination Hours are:
Monday to Friday :
WALK IN CLINIC, NO APPOINTMENT NECESSARY
from 9:30 am to 3:30 pm
Saturday :

BY APPOINTMENT ONLY from 10:00 am to 2:00 pm

Unique Appointment Procedure


For patients living at a greater distance who wish to arrange an
examination, admission and operation all in one visit, please complete
Questionnaires 1 and 2 by taking the following steps:
Step 1.
Click on Medical Information , and print the questionnaire on your
printer.

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

Upon receipt of your completed documents, a surgeon will review


the information, and office will make the necessary arrangements
to schedule you for surgery.

Unique Operating Method


There is no use of foreign bodies such as synthetic screens or
meshes, except in extremely rare cases where there has been
destruction of the tissue usually due to previous surgery.
The vast majority of our (their) hernia repairs are done with a
sedative (sleeping pill), analgesic (pain relief pill) and local
anesthesia. If necessary, additional medication is administered.

The youngest patient to date was a child of 4 months, while the


oldest was a man of 100 years.

Shouldice Business Process


If not OK

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

Walk, play, & eat with


your buddies

Day 4: Remove stitches, walk, play, eat, check out

Service Concept
What does Shouldice hospital offer to its customers?

The hernia surgery (the Shouldice method)


Peace of mind/low risk/Low Recurrence

Independence/Dignity/Control
Social experience, fraternity

Excused absence from work without guilt

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

7Ps of Service Marketing


PRODUCT
PRICE

PLACE

PROMOTION
PHYSICAL EVIDENCE

PEOPLE

PROCESS

Continued..
Physical evidence -A relaxing, resort-like setting

Process- A unique program of care and recovery

Promotion

A lifetime of care and support by mutual


relationship and follow up.
A total environment- a total environment of comprehensive,
compassionate and supportive patient care is the reason
that we continue to be the worlds leading centre of excellence
in hernia repair.(World of mouth)

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

Time Lost from work in Hospital

days

days

Time lost from work while


recovering

days

10

days

Value of time lost


(ranging from $50 to 500 per day)
Total before Allowance
for recurrence
Probability of Recurrence
Expected Cost of Recurrence
Total cost to patient, employee
and insurer

$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

How did they do that


Patients are carefully screened
Patients are active participants in the service delivery process
The avoidance of general anesthestics allows a wide range of involvement of patients
Staff is freed from much disagreeable work
Reducing the cost of nursing, housekeeping and laundry
Structure hospital jobs that involves more counseling and positive interaction with the
patients.
Highly focused factory
Highly productive surgeon:
300 hernia/yr Vs. 30 by less focused surgeon
High compensation ($50,000 + $40,000)
Opportunities for surgeons to observe and advise one another
Peer group pressure that leads to higher level of self-control of quality
A conscious effort is made to make Shouldice a family "experience.

USP of Shouldice
There is No Substitute for Experience

Shouldice Hospital has been dedicated to the repair of hernias for


over 55 years. The trained team of Shouldice Hospital surgeons have
repaired more than 300,000 hernias with a greater than 99% success rate.
Surgeons at Shouldice Hospital have a virtual 100% success rate performing
primary inguinal indirect hernia repairs. Shouldice Hospital has offered its
Medical Guarantee for more than 55 years. Shouldices strategic service
concept

Marketing Strategy of Shouldice


The three important aspects of services marketing triangle are
the employees, customers and the company itself.
Shouldice keeps its staff happy through profit sharing policy,
wherein the employees are paid a part of the profit in addition
to their fixed salaries.

Company

This sharing is done based on their contribution towards the


success of the firm. This encourages them to work hard and
put in more efforts. From the management point of view, they
have given their staff a lesser working load and weekends off.

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

Add a new floor


Establish a new facility for hernia
Expand to other types of 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.

Can maintain quality.


New surgeons not required