Ikea Case Study

Executive Summary

A business model of the Aravind Eye Hospital was innovative and obviously different from others that was strategically created based upon noble ambitious of Dr. V being full of goodwill. This means that it was not just a hospital operated for profit. All of people working there were proud of the fact they were a part of the Arvaind and it was remarkable strength someone else could not duplicate. The strength eventually brought about enough profit to continue its operation so that we could say that Aravind business model was a best practice of hospital to be spread out widely and effectively like McDonald did.

According to Aravind, how creating efficient service for sight

The Aravind Eye Hospital specializes eye care especially treating cataract, which is the major cause of blindness in developing countries. They categorized patients into two, wealthy and poor. They had built up three types of facilities that were mutually relative and provided distinctive functions. The Main Hospital earned the most of AravindЃfs income (accounting for 65.77% of total revenue from Operation charges) because most of patients treated there were comparatively rich in India. Their paying for hospital services provided them with more expensive surgery (ECCE) making their vision clearer than another (ICCE) and comfortable stay in the hospital in the rooms classed A, B, and C level. The Free Hospital, on one hand, offered the free eye care (including some kind of surgeries almost operating ICCE) mainly to the poor below the poverty line. Financially, in spite of many patients accounting for 36.12% of total directly hospital visit, they manage the Free Hospital efficiently because of satisfactory rate of net surplus to revenue accounting for 51.59% (under-mentioned). The Eye Camp cares, without charge, more patients earning poorly than the Free Hospital, accounting for one-third of all visit. And this free camp is most representative of Dr.V.Ѓfs and AravindЃfs enthusiasm by which they are encouraged to care the rest of the mass numbers of the blinds in developing countries for the future. With regard to organizing the camp, which owes to local community and sponsors public announcement, patient transportation, post-operative expense like aphakic glasses and so on, instead Aravind only bear the costs of surgery and medicines. This means that not only Aravind saves the costs of organizing the camp but also local sponsors earn the prestige and goodwill in their communities far outweighs the financial burden. So this has built a win-win relationship between Aravind and local community around the camp. Thus, through the free eye care Aravid acquires ingrained reputations rather than profits from local people and community in the region, compared with its charged hospital.

In addition to these three facilities well-organized, they are efficiently able to operate cost management. At this point, IOLs which are intraocular lens made by aravid itself help them to make operating expense less one-third to one-forth, than imported lens: IOLs cost 8.28% of their annual expenditures for Ѓf91-Ѓf92. And almost 90% of their annual budget is self-generated, they perform distinguished financial affair with rate of net surplus to revenue accounting for 51.59%.

These three facilities have relational functions to each in both financial and locative terms. The Free Hospital and the Eye Camp, financially, are able to be managed at the hand of the Eye HospitalЃfs earnings, and especially the camp can not be conducted so far form their hospital because of the higher cost