Your SlideShare is downloading. ×
Case Study: Xploryze
Case Study: Xploryze
Case Study: Xploryze
Case Study: Xploryze
Case Study: Xploryze
Case Study: Xploryze
Case Study: Xploryze
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Case Study: Xploryze

462

Published on

This case is written by Abhijeet Srivastava (PGP2011-13) of Indian Institute of Management, Raipur. …

This case is written by Abhijeet Srivastava (PGP2011-13) of Indian Institute of Management, Raipur.
The case raises the questions whether doctors should work for charity or profit. It also looks at a third dimensions where doctors can work for themselves and then work for the underprivileged out of a part of the profit earned. The larger question is whether the huge hospitals, which have nowadays started resembling 5-star hotels, can work for a "service of the poor" model or is it financially not viable.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
462
On Slideshare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. The Making of a BusinessDr. Ram Mathur had done his MBBS from Ganipal University and completed his MD from the UnitedStates of America. After completing his studies in 1996 Dr. Mathur came back to India and joined ReepalHospital, New Delhi where he spent 3 years. Realizing his ability of curing some of the diseases that eventhe best in the city could not and considering his ever increasing fame, Dr. Mathur thought of going hisown way by opening his private clinic. It was 1999 when Mathur started his private practice. A room inhis house became his clinic and most of the patients who consulted him at the hospital started comingto his house for consultation. But there was a decrease in new patients coming to him for consultation.Realizing that the income from private practice was not enough Dr. Mathur two years later in 2001 againjoined a hospital but this time as a part time consultant. It was Nortis Hospital.New Delhi, where Dr. Mathur started his career with a hospital in 1996, is a place where people wereready to pay any price to a heart surgeon. New Delhi being the capital of India attracts people from allover the country for getting treatment done for major diseases. Dr. Mathur, although since his collegedays knew the power of doctors, was now getting the practical experience. He could see how peoplewere ready to sell of their belongings to get their family members treated. Perhaps, medical service wasa place where price elasticity of demand was very low.This case is written by Abhijeet Srivastava, PGP student of IIM Raipur. This case is for discussion purpose only and not toshow the effectiveness or ineffectiveness of any individual or profession.Copyright © Indian Institute of Management Raipur Page 1
  • 2. Mathur wanted to do Engineering. The sole purpose of doing engineering was to combine it with anMBA diploma and fulfill the entrepreneurial dream. In class XIth when Dr. Mathur had to chose subjectshe chose Physics, Chemistry, Biology, English and Mathematics. This subject combination opened gatesfor both medical as well as engineering streams. A balanced approach towards all five subjects meantthat Mathur could go in for any one of engineering or medical stream though his inclination was stilltowards pursuing an MBA at some point of time in his life. But as fate would have liked it Mathurcouldn’t clear the IIT-JEE exam instead cracked a medical entrance exam. Under immense pressure fromhis family Mathur joined MBBS course. After joining the course and realizing the spectrum ofopportunities he had he started concentrating on his studies. Thought of failure at not being able to bean Engineer (or rather an MBA) had faded away in a similar manner as his memories of not being able tocrack IIT-JEE. But Mathur was realizing fast enough where his interest lied. Mathur cleared MBBS andafter that cracked MD Entrance Exam. It was clear that he was on a success path. But somewhere theurge of doing an MBA was still there. Mathur felt that MBA is not possible now but the businessman inhim was still very much alive.Dr. Mathur kept on practicing as a doctor but his aspirations were still not realized. As a doctor he hadreached a position from where earning money was not difficult now. Mathur was charging Rs. 30000 fora single operation and a consultation fee of Rs. 1000 was not that all could pay easily. Dr. Mathur wasbooked with appointments for 2-3 weeks in advance both at his residence and at Nortis Hospital.This case is written by Abhijeet Srivastava, PGP student of IIM Raipur. This case is for discussion purpose only and not toshow the effectiveness or ineffectiveness of any individual or profession.Copyright © Indian Institute of Management Raipur Page 2
  • 3. It was the spring of 2008 when Dr. Mathur while sitting with Dr. Sharma thought of opening his ownsmall hospital with the funds they had. Dr. Sharma and Dr. Mathur knew each other since 7 years andhad been working together in Nortis Hospital. Dr. Sharma was senior to Dr. Mathur and the head ofNeuroscience department. Both were respected doctors in their field. Dr. Sharma had gauged theentrepreneurial skills of Dr. Mathur. Dr. Sharma knew that Dr. Mathur would be the best choice for apartnership. With Dr. Mathur always having this hidden desire of going big in his own way, the supportand idea from Dr. Sharma was like a long felt desire turning into a reality. Dr. Mathur instantaneouslyagreed. Both agreed to quit as consultants in the hospital to concentrate on developing their ownhospital but would continue their private practice.Dr. Ashwini Mathur, wife of Dr. Ram Mathur, a gynecologist by profession was going to be the thirdpartner in the business. She didn’t have as roaring practice as the other two partners but having her inthe team was an obvious choice for two reasons. First, pitching in for any kind of loan would be easierwith three partners and second the diversity of the professional expertise base of founders wouldincrease. Dr. Mathur said- “You are my wife and you have to help me out on this. If that meansconcentrating full time on the operational activities involved in this project then let it be. If that meansgiving away your job then let it happen like that. We are going to build the best medical facility in Delhi.We will change the whole system of medical facilities in this city” Dr. Mathur was motivated in his ideaof the hospital. Dr. Mathur wanted to have a hospital that would have the best of the medicalThis case is written by Abhijeet Srivastava, PGP student of IIM Raipur. This case is for discussion purpose only and not toshow the effectiveness or ineffectiveness of any individual or profession.Copyright © Indian Institute of Management Raipur Page 3
  • 4. equipment. These were the equipment he had used during his MD in the USA. He wanted to bring hisexperience of 12 years and his foreign education both to use. Dr. Ashwini liked the idea of a hospitaland was also ready to get involved in the project full time. But with a salary of Rs. 60000 per month Dr.Ashwini found it slightly difficult to leave the job and venture into the project. But she knew she had thesupport of some of the best known names in medical services in the city. Dr. Ashwini, afterunderstanding the project from the point of view of facility location to building and to bringing some ofthe finest facilities in the world under one roof, thought that all her efforts would largely be the sameeven if the scale of the hospital is large. The only factor would be funds. Considering the goodwill of Dr.Mathur and Dr. Sharma the banks were not going to create much issue. Added to that was the contactbase and the influence Dr. Sharma commanded amongst the creamy class of Delhi. Some of thesecontacts were made as part of profession and some other due to a strategic marriage. Dr. Sharma’s wife,Mrs. Shalini Sharma is the only daughter of Mr. Adityajay Raizada. Raizada has one of the mostestablished businesses of medical equipment supplies. He is based out of Greater Noida and besidesIndia supplies his medical equipment to Netherland, Austria, Australia and Spain.Dr. Ashwini didn’t agree on opening a small hospital. She urged that it should be at least a 150 bedhospital. She was well aware of the business minds of the other two doctors and also their businessintentions. They wanted to provide the best facility but to those who could buy these facilities at themaximum retail price. She wanted to have a bigger hospital so that both rich and poor could be treated.This case is written by Abhijeet Srivastava, PGP student of IIM Raipur. This case is for discussion purpose only and not toshow the effectiveness or ineffectiveness of any individual or profession.Copyright © Indian Institute of Management Raipur Page 4
  • 5. Part of the excess money earned from rich patients could be used for patients from economicallydeprived class. Dr. Sharma was not in favor. He said- “We are going to invest crores of rupees in thishospital. You say we need to have a 150 bed hospital and I also agree to that but we need to understandthat we are not opening a charitable trust. Government is there to look after the economicallydeprived.” Dr. Ashwini was not pleased with the response but knew that her husband would also notsupport her. Dr. Ram Mathur had an unfulfilled dream of doing an MBA. He had always stayed in touchwith many of his MBA graduated friends, clients and patients. Perhaps this gave him a vicarioussatisfaction. MBA, he understood, taught people how to get higher returns on their investments. Profitwas deep rooted in his mind. Dr. Ashwini was not quite at the same wavelength as her husband or Dr.Sharma but thought of working within the constraints and was convinced that in a period of few yearsshe would be able to change the minds of the two “businessmen”.Dr. Ashwini knew that all project development work, from strategizing to finding a good location tomaking plans for hiring the best doctors, would be her job. Dr. Ram and Dr. Ashwini both coming fromgood educational backgrounds knew the importance of education. With no prior knowledge of projectsor handling a business, Dr. Ashwini enrolled for one of the most reputed MBA institutes of NCR regionfor one of its evening course. The course was a short term course which specifically taught themanagement of small business. Her free time would now be invested in finding the best place,contractors, equipment etc for the hospital. In the evening she would learn about the intricacies ofThis case is written by Abhijeet Srivastava, PGP student of IIM Raipur. This case is for discussion purpose only and not toshow the effectiveness or ineffectiveness of any individual or profession.Copyright © Indian Institute of Management Raipur Page 5
  • 6. business. Some of the aspects which inspired her most were the management of a business from thepoint of view its operations management. Dr. Ashwini learned things like Facility Layout for a hospital.She knew how good services and meticulous operations management could take the hospital to greaterheights. The hospital that had made a deep impact on Dr. Ashwini’s psyche regarding this was ApolloHospitals, Delhi. As a student of the short term course, Dr. Ashwini concentrated on the operations andservices management. She would spend time on understanding how hygiene and quality control arenecessary in a hospital. She met Mr. Mahesh Raina who was working as a Procurement manager in aconstruction company based out of Gurgaon. He was into the procurement department and wasinvolved in purchasing heavy equipment like dozers, excavators, stone crusher plants, pipelayers etc. Headvised Dr. Ashwini on negotiation skills while making a purchase decision. Though the two industrieswere different but Dr. Ashwini could still relate as eventually it was going to boil down to vendormanagement, reliability of suppliers and best sourcing practices for the medical equipment.This case is written by Abhijeet Srivastava, PGP student of IIM Raipur. This case is for discussion purpose only and not toshow the effectiveness or ineffectiveness of any individual or profession.Copyright © Indian Institute of Management Raipur Page 6
  • 7. Kindly analyze the case on below mentioned aspects. Assumptions can be made.1.) Are the aspirations and intentions of Dr. Ram Mathur and Dr. Sharma justified? Are they beingethical in their approach?2.) How should a project of this scale be handled by a team and what is the importance of ServiceOperations in a Hospital? How can Dr. Ashwini use her new found knowledge of operationsmanagement in her hospital when it is built?3.) Present a competitive strategy for the Hospital keeping the competition this new Hospital will havefrom other hospitals in Delhi, Noida and Gurgaon.This case is written by Abhijeet Srivastava, PGP student of IIM Raipur. This case is for discussion purpose only and not toshow the effectiveness or ineffectiveness of any individual or profession.Copyright © Indian Institute of Management Raipur Page 7

×