Challenges to TESCOs Expansion into Malaysia

Challenges to TESCOs Expansion into Malaysia Executive Summary For any company to enter into the international market for the first time, a proper research and analysis regarding the challenges and current marketing conditions prevailing in the targeted country must be undertaken. The project has been undertaken to analyse, understand and highlight the major challenges that TESCO can face while entering into Malaysia for the first time. The report focuses on the Political and Legal, Economical, Socio cultural Technological and environmental challenges that may create a difficulties for TESCO to start its business in Malaysia. Introduction to TESCO Tesco PLC is a UK based supermarket chain. It is the largest British retailer, both by global sales and domestic market share, and the fourth largest retailer in the world behind Wal-Mart of the USA, Carrefour of France, and The Home Depot of the USA. Tesco has a long term strategy for growth, based on four key parts: growth in the Core UK business, expand by growing internationally, be as strong in non-food as in food and to follow customers into new retailing services. Environmental Analysis of Malaysia Political Legal Environment Rising Political instability Data In recent months, The political ruling party Barisan Nasional is facing the problem of fall in its strength in ruling the country. The opposition Party Pakatan Rakyat power influence on the Malaysians is increasing which has resulted into possibilities of undertaking of elections in the coming months. Analysis It is predicted that the opposition party may emerge as victorious which lead to increased political uncertainty lower economic growth for 1-2 years. Sales may slow down in the initial years which may be due to increased political uncertainty and disturbance on spending of public during the handover process. The handover process is generally a time consuming lengthy process. it may result into impaired business for the company. lower economic growth in the beginning years may affect the purchasing power of consumers. The company may have to reduce its cost to overcome lower sales in initial years. TESCO may have to reduce its cost on marketing and advertising . The consumers may prefer price and value over quality brand. Political war between the two parties may also result in the outcome of riots which may also result into physical damage of Tescos Property and buildings. Challenge Slow economic growth at the time of change in government which may lead to slow business in the beginning of setting its business in Malaysia. The consumers may prefer price over quality. TESCO may need to have strong control over its expenses. Riots may cause physical damage to TESCOs property if the Political war emerges. Restrictions on Press Advertising Data The Malaysian Government has a very tight control on media like TV, radio, newspapers, outdoor advertising etc for broadcasting of commercials and advertisements. The advertising code code of ethics are to be followed by all the companies business in Malaysia. Analysis The government has kept ban on advertisement of products like alcohol, pork, products with unacceptable images etc. Also, advertisement related to exposure of body parts anti social content like foul language, uncompetitive practices, religious comparisons etc are strictly prohibited. The advertisement must be shot in Malaysia with Malaysian models in the advertisements. No international models from other countries are allowed. Also, the musicals of the ad must be done in Malaysia. Advertisements related to food drink products must highlight the importance necessity of balanced diet to the viewers. Powerful emphasis on the speciality lifestyle of the country of origin of an imported product is not allowed in the advertisements. Challenges TESCO will have to change its marketing and advertising strategy in Malaysia. The government control on advertising media may disallow advertisement commercials of many products of TESCO UK. The company may also have to undergo the process of repackaging re labeling on their products. TESCO will have to create new ideas to advertise its product which could be expensive and time consuming. Focus on many cultural groups Data Malay, Chinese Indian community are the 3 major cultural groups in Malaysia. Chinese Indian community are the minority communities in the country. The recent attacks against the Christian church has created political instability social unrest among the people. Analysis The wealth gap between less richer Malays very rich Chinese and Indian ethinic group in Malaysia has always been a point of concern in Malaysian politics. There has been many issues regarding this issue in the past which created a tension in the Malaysian political environment. But currently, the government is taking efficient measures to reduce the tension between the cultural groups. Christianity is also a minority religion in Malaysia on which government has to keep its attention. However, in the beginning of 2010, there were a series of attacks against Christian church because of some high court decisions. All these factors may lead to political instability in the near future. Political instability may result into the change in government. Christianity is the major religion in UK. Malaysians may tend to emotionally link the products of TESCO with Christianity as TESCO is a UK based company. This may initially led to the unacceptance of the products by Malaysians due current social unrest which may affect the sales and brand image of TESCO in Malaysian market. This may also affect the marketing and advertising strategy of TESCO. The company may have to frequently and carefully advertise its product to the consumers to change their perception about the link between Christianity and the Companys product offering. This may result into heavy expenditures resulting into the rise in cost of the company. Challenges Recent attack on churches may create the perception of link between UK TESCO products and Christianity religion which may affect the sales of TESCO. TESCO will need to advertise more frequently to change the consumers perception about the Christian religion and the local products it sells to Malaysians. Impact of terrorism Data Analysis Rising tension between Malay, Chinese Indian cultural groups in Malaysia in last few years have created a threat of internal terrorism in Malaysia. The war between the ethnic Chinese terrorists Malaysian government came to end after 42 years. However, in the beginning of 2010, there were a series of attacks against Christian church because the court said that the Christians can refer GOD as ALLAH. Challenge Sales may become difficult due to religious unrest. TESCO many have to opt for an option of Public relations on a regular basis which may increase the expenses of the company. Economical Environment Low Purchasing Power Data The GDP per capita income of Malaysia and UK for 2008 was $14,215 $35,468 respectively. Malaysia can be classified as the country of people having upper middle income level whereas UK population can be classified under high income level. Analysis The purchasing power of UK is more the purchasing power of Malaysia. It clearly reflects that the disposable income of Malaysia is comparative low to that of Uk. The per capita income disposable income of Britishers is very high thereby increasing their purchasing power. Due to high purchasing power, normally people in UK prefer brands and are brand loyal are willing to spend extra on the products. The per capita income of Malaysians is comparatively very low to that compared with Britishers. Lesser income signifies that the disposable income will be lower thereby reducing purchasing power. This will directly result in the emergence of price sensitive market condition in Malaysia where brand loyalty could be given less priority by Malaysians. Lower per capita income of Malaysians will result into low purchasing power making Malaysia a price sensitive market where buyers may be ready to buy any product with less or no brand importance. So the company sales might get affected due to this. TESCO may have to change its products, lower the quality lower the price so that the products can be produced cost effectively consumers can afford to buy. TESCO may have to start its own manufacturing unit along with its own new supply chain management and search for local suppliers in Malaysia who can provide products of good quality at a lower price. This may help in producing products at lower cost which the Malaysians can intend to buy. TESCO will have to search the place to set up their business to get proximity to the market which may help in lowering the distribution cost of its product. Challenges Lower consumer income will affect sales of the company. Uk products have high quality with high price. The company may have to rechange its quality of the products as per the price. TESCO will have to start its new supply chain management distribution system to make the local products for cost efficiency. TESCO will need to find their place of setting business where Distribution cost is very low. The company will have to look for local supply chain who can meet all above requirements. Foreign Currency Fluctuation Risk Data The foreign exchange of 1GBP to 1Malaysian Ringett in recent months has fallen from 5.8RM to 4.7RM. The interest rate of Malaysia UK in the beginning of the year 2010 were 2.25% 0.5% respectively. Analysis The key factor for fluctuations in currency exchange rates is the interest rate in different countries. Malaysia offers significantly higher interest rates than UK. Then investors will want to put money into Malaysia, thus increasing demand for the currency. The increase in currency demand may result into lowering value of Pound thus creating Foreign currency fluctuation risk.Exchange Rates are very important for any country as they determine the level of imports and exports. Challenge Importing products may become a costly option due to fluctuation in currency risk. The company may have to look for local suppliers and also may have to start new supply chain management to reduce the cost. Unemployment Level Data The recent Global financial crisis is still having a major impact on employment level in all the countries of the world. The unemployment rate in UK has reached to 8% in march 2010. The unemployment rate has increased from 3.2% in 2007 and has reached to 3.7% in march 2010. Analysis Increase in unemployment of Skilled, Semiskilled Labourers has been a major concern for Malaysian government in last few years. The Malaysian Government may put some employment restrictions on all the Multinational companies in Malaysia to hire the local Malaysians for employment. The restrictions may include more hiring of Malaysians in comparison to foreign employees irrelevant of their level of skills. Even though the higher unemployment in their home country, TESCO may undergo the pressure of hiring more Malaysians in comparison of foreign employees and provide training to them to meet the required skills for employment which may increase the overall expenses of the company. Also, employing foreign workers in Malaysia will be an expensive cost incurring idea thus increasing the operational cost of the firm affecting the product pricing. Challenge Employing foreign talent may not be possible to run the business. Providing training for Local staff would be expensive and time consuming process. Creating new supply chain management Data Low purchasing power of Malaysians, high foreign currency fluctuation and price sensitive market in the country are becoming major factors for the companies to reduce their prices of the product. Analysis Low Purchasing power of Malaysians in comparison with those of UK will create a price sensitiveness in the country where people may prefer Price over quality. Foreign currency fluctuation between Malaysian Ringett and UK Pound has been unstable in recent times. In importing goods, TESCO may end up in paying more than their usual price thus increasing the overall cost of the product. TESCO will have to reduce the price to meet the market price with its competitors product. The company will have to look for new supply chain management along with new suppliers who can provide the required quality at lesser price to meet the comsumers expectation. Setting up the new supply chain along with new local suppliers will be a big challenge as TESCO is an International Company. Challenges Importing goods from UK will be expensive for TESCO. Tesco may have to compromise on the quality of the product in case of price sensitive market. TESCO will have to set up new supply chain management along with new local suppliers to meet both the price and quality requirement of the consumers. Socio Cultural Environment Labeling Packaging Requirements Data Analysis The Malaysian government is very strict about the labeling language used on the products sold in the country. The language on all the products saleable, whether local or imported, must be written in Bahasa Malaysia or English. And in case of imported goods, the language used in either case may also include translation in any other languages. Since the Government rules regulations is very strict in Malaysia, TESCO would have to Change its labeling repack the products with descriptions in both English bahasa Malaysia Language. Also, the company will have to give more information on the product about its HALAL Certification, ingredients, Date marking, Nutrition Labeling etc. The company will have to change its packaging strategy for its products due to hot humid climatic conditions prevailing in Malaysia This will increase the cost of packaging labeling of all the products to be sold. So to gain economies of scale, TESCO may have to increase its sales volume to cover up the cost of change in labeling packaging. Challenge Relabeling and repackaging the products due to language barrier will be costly and time consuming. TESCO may have to keep on advertising its product on a regular basis to overcome the language barrier. Halal certification Data Analysis The concept of Halal on food non food category of product consumption is a vital issue in any muslim country. Islam is the official religion followed in Malaysia. The religion of Islam demands that the product to be consumed must be HALAL. In Malaysia, The Muslim consumers look for the HALAL certification on the products which is issue by Malaysias Department Of Islamic Development (JAKIM). In recent years, the Muslim consumers in Malaysia are faced with broad selection of products services which are either locally named or are international products certified as HALAL. The Competition is intense in the Malaysian market where local retailers have an upper hand for the sale of products by projecting their products as Islamic brands with the help of creative packaging labeling on their products. TESCO will have to certify HALAL certification on all it products will have to show the logo on each HALAL certified product. This will result into rising of its operating cost. Also, The HALAL certificate is valid for only 1year. So, the company may have to incur these cost every year. Challenge Certification of Halal on all products is costly and time consuming. The validity of certification is very less which results into occurrence of repetitive expenses every year. Advertising, packaging and labeling strategy would change which may increase the cost of the firm. Intense competition from local retailers will be a challenge. Technological Environmental Factors Accessibility Updation of Information Data and Analysis The percentage of urban population to total population in the year 2008 was 70.4%. Most of the hypermarkets are located in the urban areas. Rural consumers may have little access to either buy the product online or going to the nearest hypermarket in their area. So, setting the business in urban market will be a challenge to TESCO to meet capture the market share the requirements of both rural urban population. In recent years, in Malaysia, Online purchasing has become an easy, time, cost energy saving way to buy the products. This method is more followed by the urban consumers to book an order. So, TESCO will have to keep a regular update on timely basis about the availability of its products on its online purchasing website for its consumers. Challenge Target market may get narrow down due to low internet access in rural areas. Starting a business in rural area may increase the transportation cost to the urban consumers. Regular update on timely basis about the availability of its products on its online purchasing website for its consumers will be a challenge. Impact of global warming, deforestation environmental factors Data Analysis Water air pollution, impact of global warming has affected the health of the people in Malaysia. Deforestation due to regional development is also another factor affecting the country. The Malaysian government is now becoming very strict for control over these environmental problems. Any business, whether local or multinational business, has to comply with all the set of rules and regulations related to the environmental issues laid by the Malaysian government. Government may also disallow the companies in setting up of warehouses in the certain selected parts of the country. TESCO, being an multinational brand, will have to follow the strict prescribed rules laid by the Malaysian Government and may have to submit regular reports to the government regularly regarding the working of the company. Challenge Setting up of warehouses near TESCOs hypermart can be a big challenge. Transportation cost may get increased due to problem in selecting area for warehouses. Restriction on certain products can affect the business of TESCO.

Five Guys Burgers and fries: Ingredients for success Essay

Introduction The purpose of analyzing the success story of Five Guys burger is to examine the milestones covered by Five Guys to establish the successful business in private enterprise system. The perfect business plan that Five Guys has includes drivers of change on the system, the ethical and social responsibilities that Five Guys developed towards its employees. Furthermore, a unique strategy of marketing â€Å"word of mouth† which helped Five Guys in establishing more than 1000 outlets across the nation instead of spending millions of dollar in advertisement. Overall, this case study helps how an entrepreneur can run business by using out of box and simple solution to gain success in market. Five Guys’ philosophy setting apart from other fast food chains By careful reading of the Five Guys’ case study, I think quality product and customer satisfaction is the main philosophy of the Five Guys burger. According to Jerry Murrell â€Å"We need to concentrate on the quality of our product, and the satisfaction of the customers†. Five Guys maintained its philosophy of quality product for instance freshly prepared bun, fat free meat and no corner cut fries. As mentioned in the case study â€Å"The meat for the burgers – 80 percent lean- is always fresh, never frozen and their plants so clean, you could eat off the floor†. While focusing on customer satisfaction, people use to come by and eat Five Guys burger because they think; the place where burger is made is very clean and tidy. Kitchen of Five Guys is always open to customer and if someone wants to see how his/her burger is being made, (s)he is more than welcome. Landlord of a franchisee admired Five Guys by saying that we have Five Guys clean, friendly storefront and quality food in neighbors (Neil Janowitz, 2007). Secondly, customer like waiting for Five Guys burger because of its quality food. Five Guys improved its customer satisfaction by serving peanuts to its customers. Five Guys started to distribute free, unshelled peanuts to placate waiting customers. The peanuts have become a Five Guys trademark (Roger, Y, 2009). I must say that above mentioned philosophy helped Five Guys a lot in developing such successful burger’ food chain that it clearly making a competition to all other renowned fast food chains like McDonalds, Burger King and Wendys. Original Values of Five Guys burger and how it remains strong today Two Original values which I found after a careful review of case study, I assume (a) quality food and (b) no advertisement. Mentioning the standard of quality food, Five Guys burgers are as fresh and juicy as they were when the first restaurant was opened in 1986. They have same freshly baked bread every day since its opening. Similarly, potatoes are cut fresh every morning and fried in peanut oil; never greasy served in Styrofoam cup. Five Guys hired the person that baked the bread/bun for their first store, and made him a partner in the firm. They ensure that every store gets fresh bread every morning. Five Guys burger had a belief that people want to know that their money is used in providing quality food. A word of mouth strategy worked really well for Five Guys That’s why Five Guys don’t advertise to sell its product. Jerry Murrell says, â€Å"Treat that person right, he’ll walk out the door and sell for you. We were going to use our food to market our products†. (Roger, Y, 2009). Three factors contributed Five Guys’ success There are numbers of factors involved in contributing success to Five Guys business. I am going to mention only three of them. * Quality food * Simple menu * No advertisement. First factor plays an important role in the success. Simple menu, I think, is the key to success. Although, Five Guys tried to enhance or increase its menu by serving coffee and a chicken sandwich but it did not work, so they stop serving coffee and chicken sandwich. Likely, franchisees put pressure to add items, such as milkshakes but Five Guys did not accept it. â€Å"We’re the only burger chain that doesn’t have milkshakes. But we couldn’t possibly have a milkshake that comes of out of the machine† Jerry says (Roger, Y, 2009). Second factor quality of food is the heart core factor that contributed to the success of Five Guys burger. â€Å"Five Guys’ burger is better than McDonald’s,† says Tristano. â€Å"Americans have always fallen in love with a better product â€Å"(Burke M, 2012). Speaking about quality food that offers Five Guys includes superior quality of meat, eighty percent lean, always fresh, never frozen at all. Potatoes always come from northern Idaho, because of weather condition they grow more slowly, solid and tasty in comparison to the potatoes grown in California or Florida, grow faster and are cheaper used by other fast food chains. Five Guys use anything but the best. Five Guys first soak fries in water so when the fries are per fried, the water boils, forcing steam out of the fry. This forma a seal so that when they get fried a second time, the fries don’t absorb any oil and so are never oily. â€Å"Fries are much harder than burgers† says Murrell. â€Å"We work day and night on them, all the damn time.† (Burke M, 2012). Five Guys menu allows the chain to focus all its energy on executing its burger â€Å"perfectly† (Licata, E., 2009). Five Guys burger decided they would cook only in peanut oil, which cost five times as much as the oil, other burger restaurants were using (Lottie L., 2012). Finally, the factor is no advertisement, which I think contributed to the success of Five Guys. Five Guys burger had a belief that people want to know that their money is used in providing quality food. That’s why they don’t use advertisement to sell their product. Jerry Murrell says, â€Å"Treat that person right, he’ll walk out the door and sell for you. We were going to use our food to market our products† Jerry says. (Roger, Y, 2009). Five Guys burger admits that they do things a little differently than most companies other fast food companies don’t, they put 3% of their revenue toward marketing or advertising. Five Guys burger simply don’t, they spent that money as a bonus to give their employees. â€Å"All of our employees at our stores, we pay them good money. I think that’s important† Murrell says. â€Å"Hire well-paid people and they’ll stay with you.† (Lottie L., 2012). Social and ethical practices of Five Guys burger An organization is considered to be respectable because of its social and ethical policies it implemented within the organization. After a careful study, I think â€Å"No Marketing or advertisement† is one of the top social aspects of Five Guys. â€Å"He said anybody can be successful in the restaurant business if you serve a good product, (have a) friendly and clean atmosphere and reasonable price,† recalls Murrell (Lottie L., 2012). A word of mouth strategy worked really well for Five Guys. Five Guys used the strength of society in positive way and customer base is increased day by day on the recommendation of another customer. I think second aspect of social policy of Five Guys is selling its franchises. This aspect helps middle class people to have their own small business which also helps in increasing the employment rate. More than 1700 stores reportedly been sold for future development into Five Guys outlets (Datamonitor, 2010) I think ethical aspect covers how an organization is beneficial for its employee. Most of the Organizations spent a fixed percentage of its revenue on marketing but Five Guys don’t do it. Five Guys spend that fixed percentage as bonus to employees. The Company has noted that it gives around $6m a year in bonuses to its employees. Murrell says its important to make employees feel a sense of ownership and accountability. Five Guys has a policy to maintain high standard of customer service by employing mystery shoppers to regularly judge its outlets. This strategy positively appraises staff and keeps standard high. Five Guys send those secret shoppers twice a week to all locations, looking to catch staff delivering outstanding customer service. If they get a good score during the secret audits, they receive $1000 to divide amongst them, usually 5-6 people per crew. This is over and above the $8 or $9 an hour the crew makes, as a result crew feels happy and satisfied. Conclusion This case study enables us to understand that business plan is very important in order to run a successful business. Business philosophy or company goal plays an important role in running the business successful. Businesses cannot flourish if higher management don’t have out of box solution or strategy. In this case study we have noticed that philosophy plays an important role along with the out of the box marketing strategy i.e. â€Å"No Marketing/advertisement† that gives Five Guys an edge to its competitors. Reference 1. Janowitz, N. (2007). Five Guys sticks to burger-and-fries formula. Shopping Centers Today, 28(7), 32-33. 2. DATAMONITOR: Five Guys Case Study. (2010). Five Guys Case Study: Maintaining Growth in Fast Food with a Simple Menu & Quality Focus, 1-11. 3. Licata, E. (2009). FIVE GUYS. Nation’s Restaurant News, 43(18), 58. 4. Lottie L., J. (n.d). Five Guys family keeps it simple. USA Today. 07/30/2012 5. Burke, M. (2012). Five Guys Burgers: America’s Fastest Growing Restaurant Chain. Forbes.Com, 26 6. Roger, Y. (n.d). Five Guys is simply successful. USA Today, 06/08/2009

‘India’ a Hub for Medical Tourism

? ABSTRACT Medical tourism has become a popular option for tourists across the world. It takes into account primarily the biomedical procedures, combined with travel and tourism. Medical tourism has been coined by different travel agencies and the mass media to describe the rapidly growing practice of travelling across international borders to obtain cutting edge medical care. Countries like India, Malaysia, and Thailand are promoting medical tourism aggressively. The key competitive advantages of India in medical tourism stem from the following: ?Low cost advantage. ?Strong reputation in the Advanced Healthcare Segment (Cardiovascular Surgery, Organ Transplants, Eye Surgery etc. ) ? The diversity of tourist destinations available in the country. The key concerns facing the industry include: ?Less Government Initiatives. ?Lack of a coordinated effort to promote the industry. ?No accreditation mechanism for hospitals and the lack of uniform pricing policies and standards across hospit als. Medical tourism or health care tourism is fast growing multibillion-dollar industry around the world.It is an economic activity that entails trade in services and represents the mixing of two of the largest world industries: Medicine and Tourism. The paper identifies the strengths of India’s medical tourism service providers and points at a number of problems that may reduce the growth opportunity of this industry. This paper focuses on the key issues and opportunities possessed by Indian medical tourism sector that enables it to overcome domestic and international barriers on upgrading its medical services.Finally, this paper analyses and concludes the main reasons why the developing country like India attracts foreign tourists for the medical treatment. Keywords: Medicine, Tourism, Yoga, Unani, Siddha, Ayurvedic, Naturopathy. INTRODUCTION India has a bountiful of diverse tourism hotspots which enchant the recuperating visitors, their scenic beauty, historicity and soci o-cultural significance would be great harbingers of health to the ailing foreign visitors. In the recent years, government support, low cost treatment, improved healthcare infrastructure, and rich cultural heritage, have taken the Indian medical tourism to new heights.India has emerged as one of the world’s most cost-efficient medical tourism destinations, and hence, attained a position among the global leaders. According to â€Å"Booming Medical Tourism in India†, the heart surgery centers in the country offer treatment at a significantly lesser prices compared to North America and Europe. Superior quality of dental care and Ayurvedic Spa treatments are also attracting patients from across the globe. Each market segment describes the cost effectiveness compared to other countries.Though India’s reputation is not good on hygiene front, its state-of-the-art medical facilities and value for money offered attracts thousands of patients each year. In this way, the country holds enormous potential for growth in medical tourism in future. Extensive research and analysis has also revealed that quality-driven wellness centers, cord blood banking, and medical tourism facilitates medical tourism market. It has been observed that wellness tourism, alternate meditation, and the advantage of being the least competitive pricing have been the Unique Selling Point (USP) of the Indian medical tourism.Cardiac and Orthopedic procedures constitute the majority share of the market. This study reflects an in-depth knowledge of various government initiatives that provides a positive impact on the medical tourism market in India. The adoption of the Public Private Partnership (PPP) Model by the Indian Government at both central and state levels to improve healthcare infrastructure in the country through expertise of private sector and better support of public sector provided the extra thrust to medical tourism.We also observed that the regulatory structure in co nnection to the medical tourism industry has been quite liberal and supportive in the country so far. Considering all the positive insights of the analysis, it’s a hope that the analysis of current market performance and future outlook of the Indian medical tourism industry with the forecasts provided in the report will help in devising the rightful strategies and make sound investment decisions. Comparative Cost of Medical Treatment in Euros (1â‚ ¬ = 70. 24 Rs) Type of ProcedureUnited StatesIndiaThailandBone Marrow Transplant300,000 â‚ ¬ = 21,072,000 Rs24,000 â‚ ¬ = 16,85,760 Rs50,000 â‚ ¬ = 35,12,000 Rs Open Heart Procedure40,000 â‚ ¬ = 2,809,600 Rs11,000 â‚ ¬ = 7,72,640 Rs 35,000 â‚ ¬ = 24,58,400 Rs Knee Surgery13,000 â‚ ¬ = 9,13,120 Rs3,500 â‚ ¬ = 2,45,840 Rs5,500 â‚ ¬ = 3,86,320 Rs Eye Surgery2,400 â‚ ¬ = 1,68,576 Rs600 â‚ ¬ = 42,144 Rs 5,500 â‚ ¬ = 3,86,320 Rs Facelift6,500 – 16,000 â‚ ¬ = 4,56,560 – 11,23,840 Rs20 00 â‚ ¬ = 1,40,480 Rs 8,000 – 16,000 â‚ ¬ = 5,61,920 – 11,23,840 Rs Source: Business World India and Indian Brand Equity Foundation Comparative Picture of the Price of the Treatment in USD and Percentage ProcedureUSD in USA)USD (in India)Difference in Price Bone Marrow Transplant2500006920028% Liver Transplant3000006935023% Heart Surgery30000870029% Orthopedic Surgery20000630032% Cataract Surgery2000135068% Dental Procedure Metal Free Bridge550060011% Dental Implants350090026% Porcelain Metal Bridge300060020% Porcelain Metal Crown100010010% Source: IIMK Part IX – Medical Tourism CHALLENGES One of the major challenges for Medical Tourism Industry in India is the phenomenon of Crowding-Out where healthcare could become less accessible to the local population.The discrimination of care has been happening with the opening up of the healthcare market and has brought about for the residents of the destination countries. The revenue generated by developing countr ies providing medical services to foreign patients can be used to improve the access and quality of care available to the residents. However, concerns have been expressed over Medical Tourism Industry in India that it may seriously undermine the care of local residents by adversely affecting the healthcare workforce distribution.Critics addresses globalization as commoditization of worldwide healthcare where in the redirection of economic resources to support the foreign care industry makes an ill-effect on local health care as the lower income groups that have reduced access and longer waits for health services. So, instead of contributing to broader social and economic development the provision of care to patients from other countries might make worse, the existing in-equalities and further polarize the richest and poorest members of society.Healthcare spending in India accounts for over 5% of the country's Gross Domestic Product (GDP) of which only 20% is provided by the governme nt. This reflects that the public healthcare is not only weak but also under-utilized and inefficient. Similarly contends that rising in-equalities in healthcare access across private and public systems encourages a domestic Brain-Drain (migration of healthcare professionals’ takes place from public to private sector) and increases dualism in healthcare in India.It is a fear that the remunerative Medical Tourism Industry in India might flourish at the expense of the treatment of endemic diseases (AIDS, tuberculosis and malaria) thus disregarding half of the disease burden in India which is primarily infectious diseases. Hence it is to be emphasized on the governments of destination countries to implement and enforce appropriate macroeconomic redistributive policies to ensure that the local residents of these nations actually realize the potential benefits of the Medical Tourism Industry in India.In addition, there is a rapidly increasing element of competition for India for m edical tourism income from other host countries such as Thailand and Singapore. Hence, one of the key factors for the host hospitals is the concept of efficient marketing to the developed countries offering innovative ideas like a holistic medical service and tourism package. It’s also a concern on the dependency of the developed nations on developing nations for healthcare provision.In addition, it is wondered if an established model of Medical Tourism Industry in India with the niche market which draws specific patients for designated procedures and can be followed by all developing countries. If multiple developing countries entered this market, the oversaturation of healthcare services would lead to severe price-cutting to the detriment of quality of healthcare. Another area of concern is the effect on the reputation of the destination country of the practice of soliciting patients for money.For example, Dr Kohli, an Indian pediatric cardiologist admitted to soliciting me dical tourists for money on the 60 Minutes. In addition, it’s warned that the quality of some of the services offered to medical tourists can cause significant risks due to the use of:- ? Older surgical equipment and inferior quality medications; ? Poorly trained health care providers; ?Inadequate emergency rooms and implanting older-generation medical devices.In a recent research conducted by Walsh, an antibiotic found amongst the UK medical tourists returning from India and Pakistan after undergoing cosmetic surgeries. The management of post-operative complications that occur after a patient returns to his home country and the consequent costs of this care are difficult issues that remain unresolved. Besides, hospitals catering to Medical Tourism Industry in India lack accreditation labels whereas there is an demand for oversight by neutral administrator such as (JCI and Patients beyond Borders) to attract foreign to the host country.Moreover, foreign patients have to bear the treatment cost out of their own pockets since the procedures performed under Medical Tourism Industry in India are usually not reimbursed by the insurance agencies with the exception of a few companies such as Blue Cross and Blue Shield in USA. Also, Medical Tourism Industry in India lacks stringent governance and regulatory policies. Consequently, faced with the choice of many medical institutions in diverse countries, medical tourists may find it very difficult to identify well-trained physicians and modern hospitals that consistently provide high-quality care.Lack of transparent pricing policies across hospitals, customer perception of some host countries as unhygienic and prone to terrorism with low coordination between the various Medical Tourism Industry in India operators such as airlines, hospitals, hotels and insurance companies are some of the other reported shortcomings. Since, Medical Tourism Industry in India is a relatively new phenomenon, some under-researched are as are observed in the available published literature such as: ?Limited statistical information; ?Impact of globalization on healthcare policies of Medical Tourism Industry in India; ? Challenges posed by Medical Tourism Industry in India like ethical and litigation issues; ? Public sector health inequity and post operative care of the medical tourists. Hence, a qualitative research is much needed to bridge this gap with a combination of primary (semi-structured interviews) and secondary (literature review) research. OPPORTUNITIESThe emergence of Medical Tourism Industry in India encouraged a reverse Brain-Drain where highly skilled medical professionals prefer to practice in their own countries rather than in the lucrative industrialized nations. One of the compensations for their move is the freedom to carry out rare medical procedures, such as hip resurfacing which have not yet been authorized in industrialized nations. There is an accompanying flow of patients as some citizens o f developed nations choose to bypass the care offered in their countries and travel to less developed areas of the world to receive a variety of reasonably priced medical services.As a result, regional and national governments in India, Thailand, Singapore, Malaysia, Philippines and Indonesia regard Medical Tourism Industry in India as an important resource for economic and social development. The difference in treatment costs can be considerable; for example, the cost of an elective coronary artery bypass graft surgery is about $60,400 in California, $25,000 in Mexico, $15,500 in Bumrungrad, $10,000 in Thailand, and in India only $6,500 in Apollo.Hence, cost-conscious patients choose to accept the inconvenience and uncertainties of off-shore healthcare to obtain service at prices they can more comfortably afford. Medical Tourism Industry in India can be regarded as a tool for lessen the overburdened healthcare systems of industrialized nations. For example, in the US, there are 46. 6 million people with no medical insurance, inadequate coverage and those who are not eligible for Medicare. Moreover, overwhelming health-related expenses contribute to bankruptcies in the United States.Also, patients choose Medical Tourism Industry in India to circumvent the delays associated with the long waiting list in their native countries and to attain cosmetic surgeries such as dental reconstruction, fertility treatment not offered in their National Health Services such as in United Kingdom and Canada. Patients also travel overseas to access stem cell therapies which are restricted on ethical grounds in most industrialized countries but are available in the Medical Tourism Industry in India.The shortage of human organ supply available for transplant in the United States drives some patients to other countries to obtain organ transplants, a practice that has been referred to as transplant tourism. There is another category of patients who prefer Medical Tourism Industry in India for confidentiality of the treatment rendered such as plastic surgery, drug rehabilitation and reproductive tourism. Patients also prefer Medical Tourism Industry in India for more personalized nursing care offered owing to the lower labor costs in developing nations supplemented by travel to exotic locations.Recently, several Fortune 500 corporations such as Blue Ridge Paper Products Inc. have been evaluating the feasibility of outsourcing expensive medical procedures to offshore healthcare destinations to reduce the financial burden of employee healthcare. In addition with these trends, the health insurance sector has potential commercial opportunity for foreign insurance firms. Insurance provider networks are being expanded to include physicians across the globe, and it is anticipated that within a decade a majority of large employer’s health plans will include off-shore medical centers.It is believed that if Medical Tourism Industry in India continues its meteoric g rowth, medical insurance plans could take advantage of its cost savings and begin offering lower-priced premiums if policyholders could be assigned to lower-priced countries for treatment. Hence, healthcare financing could become better calibrated to patients’ financial status. Consequently, medical tourism is a component of export-led economic growth, with the foreign currency earnings from international patients translating into output, jobs and income for developing countries with the added bonus of improving their public health systems.Supplemented by other factors such as: ? Low cost of administrative and medico-legal expenses; ?Medical visas being issued in lieu of travel visas for patients allowing an extended stay for medical reasons; ? Favorable economy. English being widely spoken due to India’s history as a British colony and enjoying a favorable Government support Medical Tourism Industry in India seems to be a promising sector for India. STRATEGIES ON INDI AN MEDICAL TOURISM ?Product ?Price ?Place ?Promotion ?People ?Process ?Physical Evidence SUGGESTIONS Role of Government: The government of India must act as a regulator to institute a uniform grading and accreditation system for hospitals to build consumers’ trust. ?Medical Visas: A simplified systems of getting medical visas should be developed in order to make travel across borders smoother. Visas can be extended depending on the condition of the patients. ?Holistic medical and diagnostic centers within the corporate hospitals: The hospitals have small spaces for the relatives to pray in, thereby wedding science with religion and traditional with modern medical practices. Setting up National Level Bodies: To market India’s specialized healthcare products in the world and also address the various issues confronting the corporate healthcare sector, leading private hospitals across the country are planning to set up a national-level body on the lines of National Associa tion of Software and Service Companies (NASSCOM), the apex body of software companies in the country. It is therefore essential to form an apex body for health tourism – National Association of Health Tourism (NHAT). The main agenda for NAHT are: 1. Building the India Brand Abroad . Promoting Inter-Sectored Coordination 3. Information Dissemination using Technology 4. Standardization of Services ?Integrate vertically: Various added services may be offered to the patients. For example, hospitals may have kiosks at airports, offer airport pickups, bank transactions, or tie-ups with airlines for tickets and may help facilitate medical visas by the government. ?Joint Ventures / Alliances: In order to counter increasing competition in medical tourism sector, Indian hospitals should tie-up with foreign institutions for assured supply of medical tourists.CONCLUSION ?The First World’s Treatment at Third World Prices: India offers world-class healthcare that costs substantially less than those in developed countries, using the same technology delivered by competent specialists and attaining comparable success rates. ?India is receptively Less â€Å"Scary† Now: The author believes that a lot of entrusting medical care to different locations is about a psychological fear of the unknown. An important strategic challenge for developing-country hospitals is to reduce the psychological fear, which India has and is doing assiduously. Presence of a Collection of Medicine and Medicine Care: In India, the same depth of pool of talent for medicine exists as is the case of engineering and mathematical talent for software outsourcing. In the 1950s and '60s, the Indian government invested a lot in tertiary education. By now there are at least a small handful of medical institutes that are really first-rate, and the doctors they produce are extremely well trained. ?Strong Reputation in the Advanced Healthcare Segment: India has a plethora of hospitals offering wo rld class treatments in nearly every medical field of specialization. Portfolio of Indian Healthcare Tourism Offerings: This includes non-surgical medication complemented with Yoga therapies; unani and homoeopathic streams of medical care are in vogue. India is at an advantageous position to tap the global opportunities in the medical tourism sector. Its role is crucial to the development of medical tourism. The government should take steps in performing a role of a regulator and also as a facilitator of private investment in healthcare.Mechanisms need to be evolved to enable quicker visa grants to foreign tourists for medical purposes where patients can contact the Immigration Department at any point of entry for quick clearance. Tax incentives to the service providers, import duty reduction on medical equipment, committees to promote and foster medical tourism are some of the initiatives that can be devised. There is also a need to develop robust infrastructure in terms of transpo rt services to facilitate tourism in India. The tourism, health, information and communication departments need to work in tandem for efficient patient care.It should aim in building and promoting the image of India as high quality medical tourism destination, creating and promoting new combination of medical tourism products, keeping up the high standard of quality treatments at a reasonable price, providing informative online and offline materials and make them available to the potential customers. It should place a help desk and multi-lingual at different airports for medical tourists seeking information in various aspects. The fountainhead of India’s competitive advantage arises from the skillful use of its core competencies.These competencies are used to gain competitive advantage against rivals in the global market. Also attaining the accreditation/standard to reassure the quality of treatments as well as emphasizing on the needs and demands of the existing target marke ts must be incorporated. References ?Dr. Suman Kumar Dawn & Swati Pal, International Journal of Multidisciplinary Research ? Dr. R Gopal, The key issues and challenges in medical tourism sector in India (A Hospital perspective) ? Jyotsana Mal, Globalisation of Healthcare: Case studies of Medical Tourism in Multi-Specialty Hospitals in India ? Journals on HealthCare and Medical tourism

Case Steve Jackson Faces Resistance to Change Essay example

Course MBA 530 Organizational Behavior The Organizational Journey - Focus on the Individual Writing Assignment Week One Case Steve Jackson Faces Resistance to Change A paper submitted to Instructor In partial fulfillment of the requirements for MBA 530 At Benedictine University, Lisle, IL. Abstract The Harvard Business Review of Steve Jackson Faces Resistance to Change case study intent is to provide an intricate description of how employees resist change. Different personality traits, egotism, awareness, and social diversity are all factors that affect the outcome when implementing a system that will create change within an organizations workforce. Education, training, and employee expectations of what†¦show more content†¦All stakeholders that did not attend the mandatory training would be responsible for the make-up training, which holds all personnel and departments accountable. 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