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Study Questions For Case 2: Apollo Hospitals Of India, Report Addressing Dr. Reddy.

968 words - 4 pages

Executive SummaryDr. Reddy, you have done an incredible service for the people of India. You have started them on an incredible journey toward affordable, quality health care. You have started to reverse the "brain drain", giving bright, entrepreneurial-minded individuals an option to stay at home. You have demonstrated incredible conviction and perseverance. The hospitals that you have been able to establish in India have gained a reputation for superior health care and an incredible value. You are at a point where you need to balance the pursuit of your dream with business realities. The current infrastructure that you have established relies heavily on your families involvement and the institutionalization of your "five star" approach. In order to continue your effectiveness the expansion needs to be closely monitored. You should continue on the road of increasing hospitals, expanding programs at the IMH in order to develop management resources. This approach allows you to maintain the focus and commitment that has gotten Apollo to where it is.Organizational Profile/OverviewDr. Reddy, Apollo Hospitals was created out of your vision to make top-notch quality care available locally to the people of India. This vision is accomplished by strict adherence to your "five star" approach. The success of Madras can be attributed to your intense conviction and dedication. The success of the Hyderabad Hospital, although not as quick as Madras, can also be attributed to the conviction of your vision for creating standards that add to patient value. You have built an exceptional reputation regarding quality of care. People are willing to travel from all points of India and from abroad to receive care. They are willing to pay higher prices for the care that you have been able to provide. You are at a point where there is a need to balance the social and business costs of any proposed expansion. Up until this point, you have set up a centralized organization that relies heavily on nepotism. You have been able to control all the aspects of the "five star" approach. Extensive growth will require you to relinquish some of this control or at a minimum set up an infrastructure that will allow for easier monitoring and correction of problems.Critical IssuesThe major problem you are facing Dr. Reddy is how to effectively balance the desire for expanding your visions with the business limitations. At this juncture we do not have the management resources to expand. The supply of top-notch, renowned health professionals in India is not growing as quickly as we would like. Medical technology is available but very capital intensive. We have invested heavily in training our medical and non-medical staff and emphasizing that the ultimate value to the customer is how they are treated in all areas of their stay. This is one area where I feel we are doing good, however we must weigh any expansion plans against all of the areas that I have outlined above. We must have a...

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