For Office Use:

Grade

Communication For Managers

Group Assignment No. 1
The Quality Improvement Customers Didnt Want

Submitted by:
Group No.: 2
1. Abhishek Saini (151104)
2. Alankar Singh (151105)
3. Ankit Goyal

(151106)

Section: A
Batch: MBA FT (2015-2017)

Institute of Management, Nirma University

Date of Submission: 14 August, 2015

EXECUTIVE SUMMARY:
Quality Care is facing a problem of competitors gaining an edge over it. The company
has options of implementing computerised reception system (CRS) for niche customers,
investing in onsite medical service and testing CRS on small scale. After evaluating all

the available options it is determined that developing and implementing CRS as

concierge service for niche customers is the best alternative as it will help Quality Care
(QC) to achieve its prime objectives.

SITUATIONAL ANALYSIS:
Quality Care, an HMO, has hired a consultant, Jack Zadow to look into the leading trends
in service delivery. Jack presents his findings of competitor HealthCare One using a
computerized reception system (CRS) in 14 out of 22 facilities. He also mentions the
number two player, MediCenters interest in the same system.
Allan Moulter, CEO at Quality Care is contemplating the pros and cons of a new

reception system worth more than $350,000 as the customer survey already shows an
86% satisfaction. Pat Penstone, the companys CIO supports the idea of a new reception
system and believes its installation would be inevitable in the near future due to
government or insurance policies. She feared an outdated reception system would imply
outdated medical procedures used by QC. However, Allan believed in the regular
feedback system but was drawn to the possibilities of a new system. Even though the
feedback result proved customer satisfaction, he was inclined towards the new system as
he believed the feedback was 18 months old and could not be considered for reaching a
decision. Allan didnt want to fall behind even though QC was doing well with profits of
8.1 million. The VP of marketing, Ginger Rooney is against the system installation as she
is concerned about the study that showed customers not in favour of the new system. She
advises Allan to maintain the old reception system because it signified personal care.
Ginger meets Pat to discuss why she overlooked the fact that customers were satisfied
with the old system. Pat questions the integrity of the surveys and believes the customers
will eventually support the change in the system.
An inference can be drawn from the above situation that even though QC is currently
performing well Allan is worried since other companies of the sector are gaining
competitive advantages over it. Also, the conversation between Pat and Ginger draws that
both of them consider their ideology as the best way to compete their competitors.
PROBLEM STATEMENT:
Competitors are gaining edge over Quality Care in HMO industry.
OBJECTIVES:
1) To become number one HMO of the region in next 2 years.
2) To increase the market share of the company by 5% in next one year.
3) To increase the customer satisfaction from current 86% to 90% in next one year.
4) To increase the service rate by 20% in next one year.
OPTIONS:
1) To develop and implement CRS as concierge service for niche customers.
2) To invest in onsite medical service.
3) To implement and test the CRS on small scale.

EVALUATION OF OPTIONS:
Option 1 is to develop a computerised reception system (CRS) and use it as concierge
service for niche customers. This system will be charged exclusively enabling QC to
recover the cost incurred in implementing the system. The service will be provided only
to those customers who are willing to use it. Consequently the customers will get an
option to get service according to their requirement. The CRS will also provide QC with
a database of their niche customers. This data will be of great importance as it may help
QC to identify the various fronts where improvement can be done. But it will take time to

implement a specialized computerised system. It may even result in huge losses to the
firm if the customers do not accept the computerised system.
Since QC competitors' focus is on computerised reception system, QC may look out for
alternatives like onsite medical services. In this, the customers will get facilities of
getting onsite medical aid within specified distance limit by making a call. This will
reduce the burden on current reception system at medical facilities. Also customer
satisfaction will be increased. But this idea is difficult to implement on a large scale and
will require a bigger staff. Also, the company will have to develop a convenient service
model.
Another option is to implement the computerised system on small scale. There is no
assurance that implementing CRS will reap benefits for the company. So by determining
the response received from market by implementing the system on small scale the
company may decide the future of the system in the company. By this approach, the
intensity of loss will be minimized in case of bad market response. Subsequently, QC will
get response of employees on which basis they can take actions. They can also train the
employees. But it may not necessarily reflect the problems or benefits of CRS on larger
scale. Secondly, the competitors will be able to foresee the company's next move and may
come out with better option.
DECISION:
After evaluation (Refer Exhibit 1) the option to develop computerised reception system
as concierge service for niche customers is the considered as best option. This is because
it will result in high revenues and enable QC to gain top position among HMOs of the
region. As it will provide customers the options based on their choice, the purpose of
improving customer satisfaction will also be achieved. Another benefit is the
computerised system will fasten the service process thus more number of customers can
be serviced at a time. This will accelerate the service rate of the company.
ACTION PLAN:
1) Analyse the CRS of HealthCare One which is also a staff-model HMO.
2) Search out the various computerized reception models available in the market.
3) Determine the best feasible model which may solve the desired purpose.
4) Hire a company to implement the model.
5) Conduct training programmes for the employees.
6) Meanwhile, a survey will be conducted to determine the customers interested in the
scheme.
7) Interested customers will be informed and enrolled for the system.
8) Then, the new system will be implemented.
CONTINGENCY PLAN:
The second option will be to start onsite medical services which will make QC stand out
among its competitors. The customers will also be pleased to get medical facilities
conveniently. It will increase the number of customers thus increase in market share.

WORDS: 999

EXHIBIT:

Option 1

CRS for niche

OBJECTIVES

Objective 1
Become #1 in
HMO

Objective 2
Increase
market share

Objective 3
Increase
customer
satisfaction

Objective 4
Increase
customer
service rate

P
T Option 2
I
O
N Option 3
S

customers
Start onsite
medical
service
Implement and
test CRS on
small scale

Exhibit 1: Options-Objectives Matrix

UNDERTAKING

To Whom It May Concern:

We, Abhishek Saini, Alankar Singh and Ankit Goyal, hereby declare that this assignment
is our original work and is not copied from anyone/ anywhere. If found similar to other
sources, we shall take complete responsibility of the action, taken thereof by, CFM Team.

Group No.: 2
Section: A
Batch: MBA FT (2015-2017)
Date: 14/08/2015

Signature:
Name:

Abhishek Saini

Alankar Singh

Ankit Goyal

Roll No.:

151104

151105

151106