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Harshaanth Ahuja
University College Dublin
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David Taylor - 13201197
Alan Corboy - 13202827
Valentin Rigault - 13202690
Maxime Vi - 13201229
Harshaanth Ahuja - 13202089
Thomas Lane - 07500661
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CONTENTS
1
Introduction .................................................................................................................................. 2
1.2
Business Performance................................................................................................................... 2
1.3
1.4
2.2
2.3
2.4
3.2
3.3
3.4
4.2
4.3
4.4
4.5
Conclusion ............................................................................................................................................. 7
References ............................................................................................................................................ 8
Appendix ............................................................................................................................................. 10
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demand. This minimises the potential for bottlenecks and excess capacity occurring. Additionally, waste
was removed from as many processes as possible, as outlined above. This suggests that Shouldice have
implemented the principles of lean production in a healthcare setting (Manos et al, 2006).
The hospitals focus and specialisation reduce capital and labour requirements. Operating rooms were
relatively cheap as they did not require dedicated anaesthesiology equipment. Additionally, as most
patients demonstrated good underlying health and were undergoing relatively straightforward surgeries,
there was limited need for high dependency care.
The use of patients as a support network for each other reduced costs. Post-operative patients offered
assurance to newly admitted patients that the procedure was safe, which would have reduced the number
of questions they had for medical staff. This also set high standards for what they expected of themselves
following their operation. The friends they made provided social incentives to get up and exercise,
resulting in reduced need for encouragement from nurses or physiotherapists.
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If the demand proves sustainable, there is a viable case for the construction of an additional floor at the
existing site. The main benefits of this option is the immediate availability of the current staffs expertise,
the existence of critical mass and the tried and tested processes in place at the site.
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5 CONCLUSION
It has been demonstrated that Shouldice clearly have an extremely successful business model. This is due
to their implementation of a swift even flow process and the creation of an ethos that emphasises holistic
care. The expansion opportunity that has been presented due to the continued presence of high levels of
demand needs to be carefully considered.
The report has outlined the benefits and drawbacks of each expansion strategy available to Shouldice and
has identified expansion of the current facility as the favoured option. Successful implementation of the
expansion is vital to ensure the continued success of the Shouldice brand. This can be carried out through
the recommendations contained within this report.
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6 REFERENCES
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International journal of health care quality assurance, 25 (4), pp. 343-362.
Degeeter, M. (2008). Changing perception: Hospital brand as a design strategy. Matthew Healthcare
Design, 9 (12), pp. 10-13.
Douglas, T. J. and Ryman, J. A. (2003). Understanding competitive advantage in the general hospital
industry: Evaluating strategic competencies. Strategic Management Journal, 24 (4), pp. 333-347.
Fisher, M.L., Hammond, J.H., Obermeyer, W.R. & Raman, A. (1994). Making Supply Meet Demand in an
Uncertain World, Harvard Business Review, May/Jun, 72 (3), pp. 83-93.
Goldsmith, J. C. (1979). The health care market: Can hospitals survive? Harvard Business Review, 58 (5),
pp. 100-112.
Goodall, R. 1990. Democratic Management Principles: Involving the Staff in Decision Making. AORN
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Hancock, J.I., Allen, D.G., Bosco, F.A. McDaniel, K.R., Pierce, C.A. (2013). Meta-analytic review of employee
turnover as a predictor of firm performance, Journal of Management, 39 (3), pp. 573-603.
Hayes, R.H., Clark, K.B. (1986). Why some factories are more productive than others. Harvard Business
Review, September October: pp. 66-73.
Hirsch, L. (2013). Why newly hired physicians lose money for hospitals and need marketing. Healthcare
Success Strategies [Online] Available at: http://www.healthcaresuccess.com/blog/hospitalmarketing/why-newly-hired-physicians-lose-money-for-hospitals-without-marketing.html (Accessed 20th
March, 2014).
Johnson, A., Baum, F. (2001). Health promoting hospitals: a typology of different organizational
approaches to health promotion. Health Promotion International, 16 (3), pp. 281-7.
Kingma, M. (2001). Nursing Migration: Global Treasure Hunt or Disaster in the Making, Journal of Nursing,
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Lee, H. (2002). Aligning Supply Chain Strategies with Product Uncertainty. California Management Review,
(44) 3, pp. 105-119.
Manos, A., Sattler, M., Alukal, G. (2006). Make healthcare lean. Quality Progress, 39 (7), pp. 24-30.
Melo, M. T., Nickel, S., Saldanha-Da-Gama, F. (2009). Facility location and supply chain management--A
review. European Journal of Operational Research, 196 (2), pp. 401-412.
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Mishina, Y., Pollock, T. G. and Porac, J. F. (2004). Are more resources always better for growth? Resource
stickiness in market and product expansion. Strategic Management Journal, 25 (12), pp. 1179-1197.
Pietersen, C. (2005). Job satisfaction of hospital nursing staff. SA Journal of Human Resource Management,
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Schmenner, R.W. (2004). Service Businesses and Productivity. Decision Sciences, 35 (3), pp. 333-347.
Shouldice Hosptial Marketing Strategy [Online] 2013. Available at http://www.caseforest.com/casestudy-Souldice-Hospital-Marketing-Strategy.aspx. (Accessed 22nd March 2014.)
Watkins, M. (2013). Social media can dent reputations. Financial Times, November 8, 2013. Available at:
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(Accessed: 20th March, 2014).
7 APPENDIX
Appendix I: Schmenners Original Service Matrix
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