BY :

Rahul Ravindran [2013/01]

Anil Sen [2013/09]
Nishtha Kapoor [2013/11]
Manish Sharma [2013/14]

OVERVIEW
About

AECS
Brief History
Vision and Mission
External Analysis
SWOT Analysis
Internal Analysis : Capabilities and Competencies
Business Strategy
Corporate Strategy
Services
Leadership
Corporate governance
Organization Structure
Entrepreneurship
Conclusion

About the Organization

Aravind Eye Hospital was founded in 1976,

by Dr. G. Venkataswamy.
He started with 11 bed hospital in Madurai.
Expanded with branches at Theni,
Tirunelveli, Coimbatore, Pondicherry,
Dindigul and Tirupur.
Over the years, this organization has
evolved into a sophisticated system
dedicated to compassionate service for
sight.
In the year ending March 2015, 3.5 million
outpatients were treated and over 401,000
surgeries were performed.

Source : http://www.aravind.org/default/aboutuscontent/genesis

Services
Hospital Services
Community Outrea
ch
Education & Traini
ng
Research
LAICO
Aurolab
Eye Bank
Source http://www.aravind.org/default/servicescontent/programmes

Aravind

Brief History : Timeline

First AMECS Hospital

Source : http://www.aravind.org/default/aboutuscontent/milestones

Vision & Mission

Education &
Training

Hospital
Services
Community O/R

Eye Bank
AMRF

LAICO

AUROLAB

EXTERNAL ANALYSIS

COMPETITORS

Sankara Nethralaya Chennai

Joseph Eye Hospital.
Sankara Eye Hospital
K.G.Eye Hospital
Shroff eye centre
Vasan Eye Care

SWOT Analysis
Strengt
h
low-cost healthcare model
Vertical integration
Excellent staff
Global acceptance of Aravinds
mission

opportuni
ty
More than 20 million

people blind in India

Expansion
cross-promotion with
BioLite

Weakne
ss

production process of
the IOL
No incentives
Paying less than market
Threat

Expansion costs beyond

south India
Other Private Hospitals

Internal Environment
Core Competencies & Competitive Advantages
Cost Advantage and Affordability
High surgeon productivity
Eye care is made affordable through cross-subsidisation

Social Marketing- Marketing cataract surgeries like

hamburger using technology.
Making work enjoyable for hospital staff. A
spiritual experience allowing them to put long
hours.
Expand all surplus on modernizing and updating
our equipment and facilities.

Contd..

Generation of financial resources through

operations than external borrowings.
Facility for manufacturing intraocular
lenses (IOLs) at low costs and use IOL
based surgeries both for free and paying
patients.
Ensuring high occupancy rates at al
hospitals always.
Attract quality staff. Delegation of
responsibilities to assistants.

BUSINESS STRATEGY

Integrated cost leadership/differentiation

strategy.
High productivity and large volumes.
Defined workflow at hospitals to save
manhours and increase surgeries.
Doctors rotated between free and paying
patients.
Aurolab produces most of the equipments
at low cost at best quality.
Spectacles shops and all stores inside
hospital.

Operational Model

source- www.aravisource- Managing concepts in eye carend.org

Mc Donalds Model

Aravind
uses
McDonalds
as
their
operational model, attends its goals by
strict attention to cost optimization.
Its a service factory.
Established manufacturing operation with
low cost high quality products.
Focuses on a reduced portfolio of
specialized services performed in large
volume following a quasi-assembly line
process

LOW COST

Training of staff in related functions and

handling equipment's so that large
manpower is not required.
Optimum use of natural resources for
energy as opposed to electricity.
Cross-subsidization- Paying patients can
indirectly foot bill of poor patients.
Emphasis on Robin Hood principle for
mutual existence of quality, service and
philanthropy

Contd

source- www.aravind.org

Corporate Strategy

Diversification from Hospital to Eye

Care System
AEH has extensive coverage in Tamil
Nadu only. Now foraying into Northern
India and partnering with eye hospitals
Eye Camps ensure steady flow of
patients to hospitals.

COOPERATIVE STRATEGY

Partnering services with many hospitals

in US, Ireland etc.
Collaborating with WHO and providing
eye care to poor African countries.
Now managing hospitals for others in
UP, Bengal etc.
Bosch and AEH to start 50 vision
centres for providing eye care without
compromising on quality

HEDGEHOG STRATEGY
Dr. V, By sticking to his
strength - offering high
quality eye care at affordable
price, AECS has come a long
way.

Jim Collins' Hedgehog Concept. Do One Thing and Do It Well

INNOVATION

Aravind has shaped international eye care.

It has been through its emphasis on
understanding the human aspect of sight
restoration.
This began with Dr.Vs insistence that research
be done to find out why rural patients who
could benefit from surgery were not coming.
Social scientists were employed who found
that literacy and gender largely determined
who got surgery and who stayed blind.
source- Aravind, Partner and social science innovator by Larry Brilliant &
Girija Brilliant.

Three Strategy Horizons

Concept
H-I
19761996

Building up of 350
bed free Hospital
36,000 sq. feet
space
2 major OT and
Minor theatre for
Septic care
H-II
Arvind
EyePersonnel
Hospitals
Medical
1997- gradually
shifted
to
from main
Hospital
2003 become the Arvind Eye
Care System.
Community Outreach
Programs (1500/year)
H-III

Making Technology
Establishing Lions
Affordable (AUROLAB)
Arvind Institute of
Technology

2003 Arvind Medical

Research Foundation
Prese

SERVICES

source- slideshare- Managing concepts in eye care

SERVICES

EYE CARE FACILITIES

Aravind Eye Hospitals
Hospitals
at
Madurai,
Theni,
Tirunulveni, Coimbatore, Pondicherry,
Dindigul, Salem, Dindigul, Udalampet.
Vision Centres
Total of 3649 beds comprising 2850
free and 799 paying beds
source- www.aravind.org

SERVICES Contd...

Community eye Clinics

Speciality clinics- Retina & Vitreous,
Cataract,
Neuro
Opthalmology,
Childrens Eye care, Glucoma, Uvea,
Comea,
Low
Vision
&
Visual
Rehabilitation.

source- www.aravind.org

SERVICES Contd...

COMMUNITY OUTREACH PROGRAMS

To take eye care service to the
doorstep of the community.
In the year ending March 2013, 2,841
camps were conducted through which
554,413 patients were screened and
90,547 patients underwent surgery.
Surgery not conducted in camp but at
hospital
source- www.aravind.org

SERVICES Contd...

EDUCATION & TRAINING

Aravind PG Institute of Ophthalmology
Offers
Diploma,
Master
in
surgery,
Diplomate of National Board, Post Do DNB.
Long term and short term fellowship
programs.
Eye bank courses, Microbiology courses,
Instrument Maintenance & Community
outreach courses.
source- www.aravind.org

SERVICES Contd...

AUROLAB
Established in 1992manufactures a wide range of
ophthalmic consumables like intraocular lenses,
pharmaceutical products like eye drops, surgical
adjuncts like sutures and blades and also
ophthalmic instruments and specialty products.
Exported to 120 countries around the world and
accounts for a total of 7.8% of global share of
intraocular lenses.
Brought down cost of surgery and price of IOL to
less than 5$.
source- www.aravind.org

SERVICES Contd...

Telemedicine
Lion Aravind Institute of Community
Ophthalmology- Improve planning,
efficiency and effectiveness of eye
hospitals. Worked in India, Asia & African
hospitals
Aravind Medical Research Foundation
Aurolab- Established in 1992Eye Bank- Rotary Aravind International Eye
Bank
source- www.aravind.org

SERVICES

source- www.aravinsource- slideshare- Managing concepts in

eye care
d.org

SERVICES

source- slideshare- Managing concepts in eye care

SERVICES

source- www.aravind.osource- slideshare- Managing concepts in

eye care
rg

SERVICES

source- slideshare- Managing concepts in eye care

LEADERSHIP : Key
People

Chairman & Director Quality Dr. R.D.

Ravindran, MS., DO
Chairman Emeritus & Director
Research Dr. P. Namperumalsamy
, MS, FAMS
Directors Emeritus Dr. G. Natchiar
, MS, DO
Dr. M. Srinivasan, MS, DO
source- www.aravind.org

LEADERSHIP : DR. V
Dr. G. Venkataswamy known as
Dr.V born in 1918 near Madurai.
Completed
MBBS in 1944.
Joined Army later discharged in
1948 as suffering from severe
rheumatoid arthritis.
Joined Govt Medical College in
Chennai as ophthalmic surgeon
and became HOD in 1956.

source- www.aravind.org

Contd

He pioneered govt outreach eye camps to

address blindness in villages.
In recognition of his work to eradicate
blindness, he received Padma Shree in
1972.
In 1976, he started the Aravind Eye
hospital in Madurai initially as an 11 bed
hospital, out of which 5 beds for poor
patients.
Passed away in 2006.
source- www.aravind.org

LEADERSHIP STYLE

source- Dr. V of Aravind Eye Hospital: A 'Level 5' Leader,

ICMR 2004

Level 1- is a highly
capable
individual.
Relies on own talent,
knowledge, skills, and
good work habits.
Level
2is
a
contributing
team
member. Ensures that
team
meets
its
assigned
objectives,
and fulfils the core
purpose

LEADERSHIP STYLE

Level 3- is a competent manager. He is

skilled at organizing people and resources
towards the effective and efficient pursuit
of organizational objectives.
Level 4- is an effective leader. He sets
high level performance standards. He is
remarkable at motivating his people and
leading them single -mindedly towards
realizing his vision for the organization

source- Dr. V of Aravind Eye Hospital: A 'Level 5' Leader,

ICMR 2004

LEVEL 5 Dr. V

Level 5- transforms the organization into a

great institution. He epitomizes personal
humility and fierce professional will.
Is highly ambitious for the success of his
company. He wants his company to succeed
irrespective of his presence at the helm.
The company continues to be great even
after its founder is dead. A level 4 leader is
often more bothered about his greatness
than his company's greatness.

LEADERSHIP STYLE

They are stubborn and ruthless, yet they are

humble.
They are highly ambitious for their company, and
rarely allow their ego to come in the way of
organization's success.
Though they accomplish great things for their
organizations they never take credit.
They attribute their remarkable accomplishments
to their people, external factors, and sheer luck.
Once they are decided about what to do to ensure
best long-term results, they will go through the
process with unwavering resolve.

CORPORATE
GOVERNANCE

AEH is an epitome of CSR.

To do CSR is prime focus. The business is
centered around CSR and not vice versa.
Emphasis on accountability, transparency,
strict costing measures and quality healthcare,
patient care, bringing in latest technology to
benefit patients and being self-sufficient.
The main difference between totally corporate
functioning and trust hospitals is that the
former strives for profit, the latter for surplus.

source- www.aravind.org

CORPORATE
GOVERNANCE

Trust hospitals plough back the entire surplus

money, while corporates keep a certain amount
of profits for their shareholders.
Doctors should do what they are good at and
leave other functions to expert professionals.
More accountability of employees for their
actions. Firing people, when they refuse to adapt
to newer standards of corporate governance.
Accreditation to ensure quality parameters.
Raising infrastructure and ensure that it is used
for patients as opposed to others.
source- www.aravind.org

CORPORATE GOVERNANCE
WITH A DIFFERENCE

Costing- Reliance on bulk purchases

and ensuring that staff do not get
commission.
Large patient turnover so that funds
are adequate.
Donations from business houses if
corporate governance is good.
Minimizing wasteful expenditure and
reducing number of vendors.
source- www.aravind.org

ORGANISATION
STRUCTURE

source- www.aravind.org

RECRUITMENT &
TRAINING

Ratio of 1:6 between doctors and

nurses.
Preference for rural staff than urban
staff. Mostly girls.
Training and rotation between
departments.
Involving patients while confirming
staff.
More than salaries focus on respect.
Aravind Eye Care system- Giving the most precious gift- by
S.Manikuty and Niharika Vohra 2004 IIM

ENTREPRENEURSHIP
Burning Passion for doing good lead to
Dr.V turning entrepreneur at old age.
Dr.Nam
and
his
wife,
gave
up
government jobs as doctors to be
associated with AEH.
Started off as a very small 11 bed
hospital with self funding.
Focus not on earning profits but motto of
eradicating blindness.
source- www.aravind.org

CONCLUSION

AEH an example of an organisation which is

steadfast on its vision of eradicating needless
blindness.
Strong social cause and CRS at the front than
anything else.
Philanthropy in practise.
Strong Leadership. From goodness to great
organisation.
Innovation and technology to keep costs low and
ensure maximum outreach.
Door step marketing and push approach by
organising camps.
source- www.aravind.org

THANK YOU