BY :

Rahul Ravindran [2013/01]

Anil Sen [2013/09]
Nishtha Kapoor [2013/11]
Manish Sharma [2013/14]
 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
  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
Source : outpatients
http://www.aravind.org/default/aboutuscontent/genesis
were treated and over 401,000
 Hospital Services

Community Outreach

Education & Training

Research

LAICO

Aurolab

Eye Bank

Source http://www.aravind.org/default/servicescontent/programmes
 1988 1996
• Aravind •Rotary
Eye • AEH - • Aurolab Aravind
• LAICO
Hospital- Tirunelveli Eyebank
Madurai

1976 1992 1998

2003 •1st Primary 2008

• First AMECS Eye exam. •over 401,000
Hospital
• AEH – Centre •Dr V. Eye surgeries
research •A Successful
Pondicherry
2004 institute model
2001
2015

Source : http://www.aravind.org/default/aboutuscontent/milestones
 Hospital Services
By providing
compassionate
and high Community O/R
Education & Training quality eye through active
care for all community
by developing involvement,
ophthalmic screening
human camps, and IT
resource enabled Vision
Centers in rural
areas

VISION by reducing
By evolving
corneal
methods to To eradicate blindness Eye Bank
translate
AMRF existing
needless Blindness through eye
banking
evidence and
activities and
knowledge
public
into effective
awareness
action
programs
through
by making high
teaching,
quality
training,
LAICO capacity
ophthalmic AUROLAB
products
building,
affordable and
advocacy,
accessible
research and
worldwide
publication
 Sankara Nethralaya Chennai
 Joseph Eye Hospital.
 Sankara Eye Hospital
 K.G.Eye Hospital
 Shroff eye centre
 Vasan Eye Care
 Strength Weakness

• low-cost healthcare model •production process of the IOL

•Vertical integration
•No incentives
•Excellent staff

•Global acceptance of Aravind’s mission •Paying less than market

opportunity AECS Threat

• More than 20 million people

•Expansion costs beyond south
blind in India
India
•Expansion
•Other Private Hospitals
•cross-promotion with
BioLite®
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.
 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.
 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.
 Medical staff salaries not very high but of
source- www.aravisource- Managing concepts in eye carend.org
 Aravind uses McDonald’s 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
 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
source- www.aravind.org
 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.
 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
 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

  Aravind has shaped international eye care.
 It has been through its emphasis on
understanding the human aspect of sight
restoration.
 This began with Dr.V’s 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
source- literacy
Aravind, andsocial
Partner and gender largelybydetermined
science innovator Larry Brilliant & Girija
Brilliant.
 H-I Building up of 350 bed
1976- free Hospital
1996 • 36,000 sq. feet space
• 2 major OT and Minor
theatre for Septic care
• Medical Personnel from
main Hospital
H-II Arvind Eye Hospitals
1997- gradually shifted to become
2003 the Arvind Eye Care System.
Community Outreach
Programs (1500/year)
Making Technology
Affordable (AUROLAB)
H-III • Establishing Lions Arvind
Institute of Technology
2003- • Arvind Medical Research
Prese Foundation
nt
• Eye Bank- Rotatory
source- slideshare- Managing concepts in eye care
 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
 Community eye Clinics
 Speciality clinics- Retina & Vitreous,
Cataract, Neuro Opthalmology,
Childrens Eye care, Glucoma, Uvea,
Comea, Low Vision & Visual
Rehabilitation.

source- www.aravind.org
 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
 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
 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
 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 1992-
 Eye Bank- Rotary Aravind International
Eye Bank
source- www.aravind.org
source- www.aravinsource- slideshare- Managing concepts in eye
care
d.org
source- slideshare- Managing concepts in eye care
source- www.aravind.osource- slideshare- Managing concepts in
eye care
rg
source- slideshare- Managing concepts in eye care
 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
 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
 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
  Level 1- is a highly
capable individual.
Relies on own talent,
knowledge, skills,
and good work
habits.
 Level 2- is a
contributing team
member. Ensures
source- Dr. V of Aravind Eye Hospital: A 'Level 5' Leader, ICMR
2004 that team meets its
 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- 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.
 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
 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
source- www.aravind.org
 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
 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
source- www.aravind.org
 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
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
 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
source- www.aravind.org