cost acct Essay

Submitted By jcline46261
Words: 2162
Pages: 9

Shouldice Case

Founded in 1945, Shouldice Hospital is the global leader in hernia repair. Dr. Edward Earle Shouldice founded the Shouldice Hospital. Dr. Shouldice founded the hospital after he developed a new technique for hernia repair that cut the recovery time down from three weeks to three days. Dr. Shouldice revolutionary technique allowed patients to become ambulatory immediately after the surgery was performed. Prior to this technique patients would have been bed ridden for weeks. The Shouldice Hospital has also developed a type of care that they call the Shouldice model. The Shouldice Hospital is located on a country estate. A stay at the Shouldice Hospital feels more like a stay at a country club than a hospital. Shouldice Hospital offers a very high level of customer intimacy by keeping a friendly staff and putting patient care quality as their top priority. Because of this the Shouldice hospital has a very high reputation and very high customer loyalty. Combining Dr. Shouldice revolutionary technique in hernia repair in conjunction with the application of the Shouldice model the Shouldice Hospital has become the most respected and in demand hospital for hernia repair in the world. Below is a SWOT analysis of Shouldice Hospitals current business operations.



Specialized superior technique
Narrow product line
Great reputation
Only 1 location
Customer intimacy through staff
Inability to meet demand
High level of customer loyalty
Limited capacity
Experience like no other hospital
Inefficiency due 3 day inpatient care
Country club atmosphere at facility
Negative reputation from turning away some
Brand recognition of service is high
Patient care quality is high The Shouldice Model The Shouldice Technique


Expansion of current facility
Competitor opening in our market
Expansion to new locations and markets
Competitor copying the Shouldice market
Ability to specialize to new surgeries
Government involvement
Ability to apply Shouldice model to other surgeries
Competitor opening in markets we are not in and stealing unserviced demand
Ability to sell the Shouldice model
Loss of customer care quality with expansion

Shouldice Hospitals business operations are very successful due to the hernia repair technique that Dr Shouldice developed. The decreased bed rest time that was achieved through this technique is what the hospital was built upon. The fact that a patient is encouraged to walk from the operating table to his wheel chair instead of lying in a bed for three weeks is the hospitals greatest strength. The level of quality service it offers to the patient supports this. Between the staff, atmosphere and minimum three-day stay the hospital has created a strong model for patient service and care. This care has led to a very high amount of loyalty from its customers that have translated into strong brand recognition in the field of hernia repair.

The Shouldice hospital currently offers one type of service. This service is hernia repair. This narrow product line limits the size of the market that we can service. The fact that we only offer one location and are all ready at capacity is a weakness. Shouldice's requirement to have a patient stay a minimum of three days for an operation is also a weakness. This is an inefficiency step in our process that negatively impacts our capacity.

The opportunities for Shouldice largely deal with expansion. Shouldice is currently not meeting demand. One way to meet demand and increase profit is to expand either at our current location or to expand in to new markets. Shouldice could also look into differentiating its product line by applying the Shouldice model to different types of surgeries that may fit. Shouldice may be able to even sell its model to other specialist as a business model.

The threats that currently face Shouldice largely come